The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over growing risks of stagflation in Nigeria, citing global energy shocks, political pressures, and fiscal constraints. These threats are detailed in CPPE's economic outlook for the second quarter of 2026, which highlights vulnerabilities in the country's macroeconomic stability. While the Nigerian economy has shown signs of recovery, the think tank cautioned that rising inflation, coupled with stagnant growth, could derail progress. Political uncertainty expected in the lead-up to the 2027 elections is seen as a key factor amplifying economic risks. CPPE noted that external pressures, including volatile crude oil prices and tightening global financial conditions, further limit policy options. The report stressed that without coherent fiscal discipline and structural reforms, inflation could remain elevated while output growth falters.
CPPE's warning about stagflation in Q2 2026 places President Bola Tinubu's economic legacy at risk, given the administration's reliance on market-driven reforms amid rising costs. With inflation already biting hard, any slowdown in growth could deepen hardship for millions of Nigerians. The projection suggests that political calculations in the 2027 election cycle may begin distorting economic policy as early as mid-2026.
