Market News

The Centre for Promotion of Private Enterprises (CPPE) has said that achieving higher, more inclusive, and sustainable growth in Nigeria, will require the federal government to tackle the long-standing structural constraints in agriculture, manufacturing, and trade with targeted policies to ease cost-of-living pressures in the country.

Advertisement

According to Muda Yusuf, chief executive officer, CPPE, Nigeria’s latest Gross Domestic Product (GDP) report for the third quarter of 2025 which indicates that the economy grew by 3.98 percent in real terms, confirms that the economy remains firmly on a path of steady recovery and consolidation.

The Q3 performance highlights the positive impact of ongoing economic reforms, especially in stabilising the exchange rate, moderating inflation, improving fiscal conditions, and gradually restoring investor confidence.

He noted that even though the trade sector grew by 1.98 percent, up from 1.29 percent in Q2, high import costs, weak consumer demand, and ongoing import-substitution measures continue to constrain growth.

“These macroeconomic gains have strengthened business sentiment and supported activity across key sectors of the economy. However, despite improving fundamentals, the cost-of-living crisis remains a concern. While disinflation is underway and prices of some food items and manufactured products are easing, the social outcomes of economic reforms continue to weigh on households.

“It is therefore imperative for policymaking to prioritise targeted interventions to address the uneasiness around the cost of living and ensure that GDP Growth and macroeconomic stability translate into real improvements in citizens’ welfare—particularly for vulnerable groups,”he said.

Yusuf noted the moderate recovery amid structural constraints in the Agriculture sector which grew by 3.79 percent, up from 2.82 percent in Q2. He said that despite this modest improvement, insecurity in farming communities, weak rural logistics, limited mechanisation, and declining purchasing power continue to constrain full-scale recovery.

Manufacturing sector, according to him, is still fragile and under pressure even though it expanded by 1.25 percent, one of the weakest performances across major sectors. He noted persistent challenges including : high energy and logistics costs; costly borrowing conditions; dependence on imported industrial inputs and smuggling of competing products.

These structural weaknesses, he said, have continued to erode competitiveness and limit job creation.

“The ICT sector grew by 5.78 percent, slightly below its Q2 growth of 6.6 percent. Nonetheless, the sector remains one of the economy’s strongest performers, driven by rapid digitalisation, e-commerce expansion, and increased technology adoption by households and businesses.

“Real estate posted an exceptional 89 percent nominal GDP growth, fuelled by rising property values and asset revaluation. While favourable for investors in the sector, this trend intensifies housing affordability challenges, especially in major cities. Land administration reforms and affordable housing initiatives have become urgent.

To consolidate the gains recorded in Q3 and unlock stronger, more inclusive growth, Yusuf said “there is need for policy interventions to reduce structural bottlenecks, address energy supply constraints, reduce logistics costs, improve port efficiency, and accelerate transport infrastructure development.

“All tiers of government [local, state and federal] must sustain targeted interventions in agriculture, pharmaceuticals, transportation and energy to fix the cost of living crisis. Implement targeted social interventions and remove structural impediments that elevate consumer prices. Improve security in farming regions, expand irrigation and storage facilities, invest in rural road networks, and support mechanisation.

”With continued reforms, targeted investments, and strengthened governance, Nigeria is well-positioned to deliver stronger economic outcomes in the months ahead.”