NESG: Nigeria must consolidate stabilisation gains to secure sustainable growth
Orisemeke Benjamin
Following two years of far-reaching economic reforms—including fuel subsidy removal and exchange rate unification—Nigeria has reached a critical inflection point in its economic transformation journey, according to a new report by the Nigerian Economic Summit Group (NESG).
The research paper, titled “Consolidating Economic Stabilisation Gains: Pathway to Sustainable Growth in Nigeria,” highlights that while initial stabilisation efforts have yielded measurable macroeconomic progress, these gains remain inherently fragile and require immediate consolidation to translate into lasting prosperity.
According to the NESG, Nigeria’s economy expanded by 3.9 percent in 2025—up from 3.2 percent in 2024—and sustained that 3.9 percent growth into the first quarter of 2026. This growth was anchored by key sectors, including Agriculture, Manufacturing, Construction, ICT, and Finance. Exchange rate stability also improved significantly, supported by foreign reserves surging past $51 billion in June 2026.
However, the report warns against complacency, citing persistent risks such as reignited inflationary pressures following external shocks, mounting public debt obligations, elevated poverty levels, and insufficient job creation.
“Nigeria stands at a defining crossroads in its economic transformation journey,” the NESG report observes. “While the stabilisation phase focused on restoring macroeconomic balance and correcting longstanding structural distortions, the challenge now is to consolidate these gains and translate them into broad-based improvements in productivity, investment, employment, and living standards.”
The NESG cautions that macroeconomic recovery alone cannot deliver long-term economic prosperity without institutionalizing the initial reform wins.
“Macroeconomic stabilisation is a necessary foundation for recovery, but it is not sufficient to deliver sustained and inclusive economic transformation. Without deliberate efforts to institutionalise reforms, deepen structural transformation, strengthen productive capacity, and improve governance, the gains achieved thus far risk proving temporary.”
To navigate this transition successfully, the think-tank outlines four interconnected pillars for the consolidation phase: sustained macroeconomic stability, strong institutions, structural transformation, and social inclusion.
Key recommendations include broadening domestic revenue mobilization, expanding strategic infrastructure investments via public-private partnerships, deepening regulatory quality, and expanding the national social register to protect vulnerable citizens.
“The Consolidation phase represents the decisive stage of Nigeria’s economic transformation journey,” the NESG concludes. “Successfully navigating this phase will require unwavering policy commitment, disciplined implementation, institutional coherence, and effective coordination across all levels of government and the private sector.”
