Nigeria's economic outlook for 2026 appears promising, with a projected growth rate of 4.2%, according to a leading financial expert. This forecast was delivered by Kolawole Odunlami, Associate Director & Strategy at PwC Nigeria, during a recent industry event.
Drivers of Growth and Fiscal Improvements
Speaking as the guest speaker at the 2025 FSI Gala Night organised by Huawei on 12th December, Odunlami anchored this positive projection on the country's sustained economic reforms, better fiscal performance, and vibrant capital market activities. He identified the financial services, information and communications technology (ICT), and capital market sectors as critical engines for the anticipated expansion.
He further noted that government revenue, which has already seen significant improvement, is expected to strengthen even more in 2026 as new tax reforms take full effect. However, he tempered expectations by clarifying that these fiscal gains are not likely to translate into higher take-home pay for employees in the near term.
Significant Risks to the Economic Outlook
Despite the optimistic growth forecast, the economist issued a strong caution. He emphasized that several economic risks must be carefully managed to sustain this growth trajectory. The key threats highlighted include:
- Insecurity: Particularly its devastating impact on agricultural production and food supply from the northern region, which is a major contributor to inflation.
- Pricing pressures and ongoing geopolitical crises.
"The agricultural sector in the country is truly affected by insecurity," Odunlami stated. "With food inflation accounting for about 50 per cent of Nigeria’s overall inflation rate, there is a need to effectively address this challenge to have a positive impact on our broader economy."
He also warned of potential external repercussions if the insecurity crisis is not urgently addressed, noting that sanctions from a country like the United States could cripple key Nigerian industries such as oil & gas, banking, defense, technology, and mining.
Huawei Event Highlights Digital Finance's Role
The insights were shared at the Financial Services Industry (FSI) Gala Night hosted by Huawei Technologies in Nigeria. The event gathered banking leaders, policymakers, economists, and tech executives to discuss the nation's economic journey and the future of digital finance.
In his address, the Chief Executive Officer of Huawei Nigeria, Chris Lu, linked the company's success in 2025 to the economic reforms of the current administration. He pointed to a stable foreign exchange market and a stronger naira as key factors that have restored investor confidence.
Jason Cao, CEO of Huawei Global Digital Finance, highlighted the company's role in building resilient digital finance infrastructure with AI. He revealed that 7 banks in Nigeria are currently enhancing their digital services using Huawei's products and called for the adoption of inclusive and secure real-time payment platforms.
The company's Director of FSI, Glarie Gao, expressed gratitude to customers and partners and congratulated winners of the Best Trainee Awards, looking ahead to new achievements in the coming year.
