By By Elizabeth Ugbo
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said Nigeria’s economy has stabilized on Thursday in Abuja. He spoke after the 158th National Economic Council meeting, highlighting stronger growth, lower inflation and improved credit ratings. However, he warned that foreign-exchange risks, food inflation and election-related fiscal pressures remain key concerns.
Government Highlights Economic Gains
Oyedele briefed State House correspondents after the NEC meeting in Abuja.
According to him, Nigeria has recorded notable improvements across several economic indicators.
He said real Gross Domestic Product growth reached 3.89 per cent in Q1 2026.
That figure compares with 3.13 per cent during the same period in 2025.
Oyedele also projected that economic growth would exceed four per cent in 2026.
Meanwhile, he said inflation had fallen significantly.
Nigeria’s inflation rate stood at 15.43 per cent at the end of July.
The figure represents a sharp decline from 24.94 per cent recorded one year earlier.
Nigeria Records Stronger Trade Surplus
Oyedele also highlighted improvements in Nigeria’s external trade position.
According to him, the country’s trade surplus nearly doubled within one year.
The surplus rose from N17.7 trillion in 2025 to N34.7 trillion by Q1 2026.
He said the development reflected stronger economic activity and improved external balances.
Furthermore, public debt remained moderate at 13.7 per cent of GDP.
The minister put Nigeria’s total public debt at N159.28 trillion.
He also noted improvements in debt servicing.
According to Oyedele, debt service as a share of revenue has continued to decline.
It fell from almost 100 per cent in 2022 to below 60 per cent in 2025.
Nigeria Gains Frontier Market Status
Oyedele also announced Nigeria’s reclassification as a frontier market.
He described the development as positive news for the Nigerian economy.
The new status could create more opportunities for foreign investment and capital inflows.
It could also support faster economic growth and job creation.
“We see opportunities ahead for the country, especially how we accelerate growth and lift our people out of poverty,” he said.
The minister added that the development could reduce friction around cross-border capital flows.
Global Agencies Upgrade Nigeria’s Credit Rating
Oyedele said Nigeria had also received improved assessments from major rating agencies.
According to him, Fitch Ratings, Moody’s and S&P upgraded Nigeria’s sovereign credit rating.
The upgrades occurred between April 2025 and May 2026.
He described the move as the first coordinated alignment in more than a decade.
The minister also highlighted Nigeria’s progress on financial transparency.
Nigeria exited the Financial Action Task Force grey list in October 2025.
It also left the European Union’s anti-money laundering deficiency list in January 2026.
Oyedele said these developments strengthened international confidence in Nigeria.
Government Targets Job-Rich Economic Growth
Despite the gains, Oyedele said major challenges still require attention.
He identified geopolitical conflicts and commodity shocks among the key risks.
Persistent food inflation also remains a major concern.
In addition, he warned about fiscal risks linked to the election cycle.
Oyedele also stressed the need to counter negative pre-election economic narratives.
He said such narratives should reflect available economic data.
“The government must focus on creating jobs while managing Nigeria’s vulnerability to foreign-exchange shocks,” he said.
Agriculture, Energy and Digital Economy Get Priority
Oyedele said NEC had identified several sectors for accelerated development.
They include agriculture, energy, manufacturing, mining and the digital economy.
He said these sectors employ a large share of Nigerians.
According to him, 81.4 per cent of Nigerians work in agriculture and non-tradable services.
Therefore, the government must strengthen these sectors to deliver broader economic benefits.
“Council deliberated that there is a need for us to accelerate growth in these sectors where majority of our people work,” he said.
He added that stronger growth would help reduce poverty.
It would also narrow the inequality gap across the country.
“That way, we lift them out of poverty and we close the inequality gap,” Oyedele said.
Foreign Exchange Risks Remain a Concern
The minister stressed the importance of managing Nigeria’s foreign-exchange vulnerability.
He said effective management of currency risks would support economic stability.
It would also help the country convert current gains into broader prosperity.
However, Oyedele acknowledged that Nigeria still faces significant economic challenges.
He called for coordinated efforts from the government and other stakeholders.
The minister identified foreign-exchange shocks as one of the major risks to sustained economic growth.
He said the government must therefore protect economic stability while creating more jobs.
Economic Stability Must Translate Into Prosperity
Oyedele said recent economic indicators show that Nigeria has made meaningful progress.
However, he stressed that stability alone would not solve the country’s economic challenges.
The government must now turn improved economic conditions into tangible benefits.
That means creating jobs, reducing poverty and narrowing inequality.
It also requires stronger investment in sectors where most Nigerians earn their livelihoods.
Therefore, the government plans to accelerate reforms while supporting productive sectors.
Oyedele said these measures would help sustain Nigeria’s economic recovery.
They could also position the country for stronger and more inclusive growth.
