The Centre for the Promotion of Private Enterprise (CPPE) has stated that despite encouraging economic growth figures, the severe impact of reforms on household welfare means the cost-of-living crisis remains a pressing national concern.
Economic Growth Amidst Persistent Hardship
Reacting to the third quarter (Q3) 2025 gross domestic product (GDP) report released by the National Bureau of Statistics (NBS), the CPPE acknowledged that the 3.98 per cent growth indicates the economy is on a path of steady recovery. The policy brief, signed by CPPE's Chief Executive Officer, Dr. Muda Yusuf, was made public on Monday, 2nd December 2025.
However, the Centre insisted that the social outcomes of ongoing economic reforms continue to burden Nigerian families. It argued that this is why, even with improving fundamentals like disinflation and some easing food prices, the high cost of living has not abated. The CPPE stressed that policymaking must now focus on targeted interventions to ensure GDP growth translates into tangible welfare improvements, especially for vulnerable groups.
Sectoral Performance: Strengths and Weaknesses
The NBS data showed the non-oil sector maintaining its dominance, contributing 96.56 per cent to the economy, primarily driven by agriculture. The CPPE attributed the Q3 performance to reforms that have stabilized the exchange rate, moderated inflation, and improved investor confidence.
The services sector remained the largest GDP contributor at 53 per cent, supported by digital adoption and financial services expansion. Agriculture grew by 3.79 per cent, up from 2.82 per cent in Q2, but faces constraints from insecurity, weak rural logistics, and limited mechanization.
In contrast, manufacturing expanded by only 1.25 per cent, one of the weakest performances. The CPPE blamed high energy costs, expensive borrowing, and smuggling for eroding the sector's competitiveness.
Other notable sector performances include:
- ICT: Grew by 5.78%, slightly below the previous quarter.
- Real Estate: Posted an exceptional 89% nominal growth, fueled by rising property values, but this exacerbates housing affordability issues.
- Financial Services: Was the best-performing major sector, expanding by 19.63%.
Pathway to Inclusive Growth
To consolidate gains and foster inclusive growth, the CPPE recommends the government take decisive action in several areas:
The Centre's key recommendations include reducing structural bottlenecks in energy and logistics, mitigating the cost-of-living crisis, strengthening agricultural productivity, and rebuilding manufacturing competitiveness. It also emphasized the urgent need for land administration reforms and affordable housing initiatives to address the real estate boom's social impact.
"Targeted policies to ease cost-of-living pressures are crucial to making the reform process inclusive," the CPPE stated. It concluded that while Nigeria's Q3 GDP performance reaffirms a gradual recovery, achieving sustainable growth requires tackling long-standing structural constraints in agriculture, manufacturing, and trade.
