- Nigeria Records Economic Growth in Q1 Amid Persistent Risks
- Experts call for reforms
- Egwim noted that liquidity in the financial system has improved since the third quarter of the previous year
Nigeria’s economy recorded a steady but cautious performance in the first quarter of the year, with experts pointing to signs of resilience despite ongoing structural challenges such as insecurity, uneven sectoral growth, and pressure on consumers.
Eko Hot Blog reports that this formed the focus of discussions at a CEO session hosted by the European Business Chamber Nigeria in Lagos, themed “Navigating the Q1 Economy and Financing Industrial Growth.”
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Chief Economist at PwC Nigeria, Olusegun Zaccheaus, said the economy performed relatively well in Q1 despite both domestic and external shocks. He noted that the monetary environment is expected to remain stable, while fiscal conditions continue to evolve without any major downturn in sight.
However, he stressed that consumer pressure remains high and growth across sectors is uneven, with oil and gas outperforming industries such as manufacturing.
Zaccheaus identified insecurity as a major concern, warning that it continues to affect Nigeria’s global perception and increase sovereign risk, which could discourage foreign investment. He also emphasised the need to boost productivity, particularly through reforms in the power sector.
Looking ahead, he projected stronger economic performance in 2026 compared to 2025, urging the government to sustain policy consistency, improve security, and create a more investor-friendly climate.
He added that renewed investments in oil and gas, alongside growth in telecommunications and technology, are positive signals for the economy.
Also speaking, Chief Economist at First Bank Group, Chinwe Egwim, described the macroeconomic environment as gradually stabilising, though still influenced by global economic trends.
She explained that fluctuations in global oil prices have had mixed effects boosting government revenues while increasing financial pressure on businesses and households.
Egwim noted that liquidity in the financial system has improved since the third quarter of the previous year, enhancing access to credit. However, she pointed out that many small and medium-sized enterprises (SMEs) still struggle with documentation, structuring, and meeting lending requirements.
She added that credit availability is improving across key sectors, driven by broader banking industry trends, but emphasised the importance of proper financial planning and repayment capacity for businesses seeking funding.
General Manager of Eurocham Nigeria, Chigozie Okwara, described the session as timely, particularly in light of ongoing reforms in taxation, policy, and economic planning.
He said efforts are underway to strengthen collaboration, attract investment, and facilitate the transfer of European technology to Nigerian businesses, with a focus on improving competitiveness and operational standards.
Also, Director and Head of Nigeria at the European Bank for Reconstruction and Development, Hamza Al-Assad, said Nigeria’s membership of the bank in 2025 reflects growing international confidence in the country’s economic potential.
He noted that the institution evaluates projects based on financial viability, governance, regulatory conditions, and risk management, adding that it also helps businesses become more “bankable” by aligning them with global standards.
Al-Assad added that the bank is targeting key sectors and will work closely with local partners to drive sustainable investment across Nigeria.
