Market News

BY Favour Okpale 

The Centre for the Promotion of Private Enterprise (CPPE) has said Nigeria achieved notable macroeconomic stability in 2025 but warned that deep-seated structural and fiscal risks could temper growth prospects in 2026 if not decisively addressed.

In its Review of the Nigerian Economy in 2025 and Outlook for 2026 released on Sunday, Muda Yusuf, Chief Executive Officer of CPPE, noted that 2025 marked a turning point after the turbulence associated with the early phase of economic reforms.

Exchange-rate stability emerged as a major gain, with the naira trading largely within the N1,440–N1,500 to the US dollar band, restoring predictability to pricing, contracting and investment planning.

Inflation also moderated significantly during the year, decelerating from 24.48 per cent in January to about 14.45 per cent by November 2025. CPPE attributed the slowdown to currency stability, easing logistics pressures and improved supply conditions, noting that prices of several food items and imported consumer goods declined outright, helping to improve consumer sentiment.

Business confidence strengthened, with the NESG Stanbic IBTC Business Confidence Index remaining positive for most of the year. According to CPPE, many firms that recorded losses in 2024 returned to profitability in 2025, reflecting the benefits of stabilisation.

However, Yusuf described fiscal performance at the federal level as weak, largely due to persistent revenue shortfalls and rising debt-service obligations.