Nigeria’s recent economic gains could be threatened by increased government spending ahead of the 2027 elections and a slowdown in reforms as political activities gather pace, the Nigerian Economic Summit Group (NESG) has warned.
In its 2026 Half-Year Outlook Report, launched at the NESG Industrialisation and Competitiveness Forum in Abuja which was monitored by Daily Sun on Wednesday, the think-tank said pre-election fiscal excesses could undermine the consolidation gains achieved after two years of difficult reforms, crowd out private sector credit, and erode investor confidence.
“Election-related uncertainty remains a key downside risk to Nigeria’s growth outlook,” the report stated. As political activities intensify ahead of the 2027 General Elections, reform momentum could weaken while fiscal discipline comes under pressure from increased pre-election spending.”
The warning comes as Nigeria’s economy shows signs of sustained recovery. Gross domestic product expanded by 3.9 per cent in the first quarter of 2026, up from 3.1 per cent in the same period last year, driven largely by non-oil sectors. The Purchasing Managers’ Index (PMI) rose to 53.3 points in the second quarter from 52.8 points in Q1, indicating faster business expansion.
