Nigeria's Economy Set to Grow 4.7% in 2026 - Edun Projects Job-Rich, Investment-Led Growth

Nigeria's economy is projected to grow by 4.68% in 2026, driven by an investment-led, inclusive growth strategy aimed at creating jobs and improving citizens' welfare, the Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, has disclosed.

Delivering the keynote address at the launch of the Nigerian Economic Summit Group (NESG) Macroeconomic Outlook Report in Lagos on Thursday, Edun said the growth projection aligns with the federal government's medium-term goal of achieving 7% annual growth and building a one-trillion-dollar economy by 2030.

"The economy in 2026 is projected to grow at 4.68%, consistent with our path to seven per cent growth per annum and a one-trillion dollar economy by 2030,ÔÇØ Edun stated, adding that average inflation is expected to settle at 16.5% with the exchange rate averaging N1,400 per dollar.

Edun highlighted that the 2026 budget, titled "Budget of Consolidation, Renewed Resilience and Shared Prosperity,ÔÇØ is designed to ensure that macroeconomic improvements translate into tangible benefits for Nigerians, including reliable electricity, improved food security, and enhanced welfare.

He added that despite a budget deficit estimated at 4% of GDP, the federal government remains committed to fiscal discipline, transparency, and accelerated growth.

"Ongoing investments in digital infrastructure, including the rollout of over 90,000 kilometers of fibre optic cables, will empower young Nigerians and support technology-driven growth,ÔÇØ he explained.

Four-Point Reform Agenda

The minister outlined a four-point reform agenda as the anchor of the government's economic strategy:

-Consolidate macroeconomic stability

-Improve business and investment climate

-Strengthen human capital and social protection for the vulnerable

-Stimulate broad-based, inclusive economic growth

Edun noted that fiscal federalism has been strengthened, with funds due to states and local governments fully disbursed, enabling many states to record budget surpluses of around 3%, which will support spending on health, education, and public services.

The minister further emphasized the completion of priority capital projects, noting that aggregate capital expenditure in 2024 stood at about N11.1 trillion, achieving 85% performance, while all statutory obligations, including debt servicing and salaries, were fully met.

To reduce reliance on debt, Edun said the government is focusing on domestic revenue mobilization, digitalizing payments, and improving reconciliation systems to block leakages. A new pro-poor tax law has also been implemented to broaden the tax base, simplify compliance, and exempt essential goods and small businesses.

Edun underscored the critical role of the private sector in sustaining growth, urging Nigerians at home and in the diaspora to invest. He noted that Nigeria's exchange rate stability, expanded trade opportunities under ECOWAS and the African Continental Free Trade Area (AfCFTA), and infrastructure investments will continue to enhance competitiveness.

"Although challenges remain, the Federal Government is resolute in translating economic stability into inclusive, job-rich growth,ÔÇØ Edun concluded.