Nigerian Economic Summit Group Warns Against Policy Reversal to Protect Fragile Economic Recovery

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By: AXL Media

Published: Apr 11, 2026, 10:02 AM EDT

Source: Information for this report was sourced from The Nation.

Fragile Stability at Risk from Policy Shifts

The Nigerian Economic Summit Group (NESG) has issued a stern warning that the country’s recent economic stability remains delicate and could be undone by the abandonment of ongoing reforms. Speaking at a quarterly media session in Abuja, the group noted that calls to reverse current policies have intensified due to hardships exacerbated by the global impact of the US-Israel conflict with Iran. However, the NESG maintains that "policy flip-flops" would likely discourage international investment and worsen long-term poverty, effectively trapping the nation in a cycle of fiscal strain.

Projections Show Potential Slump in GDP Growth

Joseph Ogebe, the NESG’s Head of Research, presented data suggesting that a reversal of key reforms could push Nigeria's growth rate down to between 2% and 3%. This level is significantly lower than the 3.9% growth recorded as of early 2026 and far below the 6% target required for meaningful poverty reduction. Ogebe emphasized that while the broader economy is showing signs of recovery—including a sharp drop in inflation to 15.06% from 2023 highs—the progress has not yet significantly altered the daily lives of most citizens, making the current period a decisive turning point for the country.

The Sustainability Debate Over Subsidy Reintroduction

A primary concern for the NESG is the renewed public pressure to reintroduce fuel and electricity subsidies. The group argues that previous subsidy arrangements forced the government to borrow heavily to sustain consumption, leaving virtually no room for infrastructure or capital development. Olusegun Omisakin, the NESG’s Chief Economist, noted that reversing these reforms would likely bring back the systemic inefficiencies that brought the economy close to total disruption in previous years. He cautioned that Nigeria must avoid the path taken by countries like Ghana, which faced severe setbacks after rolling back essential economic policies.