The federal government has been urged to accelerate power sector reforms to stop the electricity crisis derailing Nigeria’s recovery.
According to the Director and CEO of the Center for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, the country’s emerging economic recovery could weaken unless the government urgently accelerates reforms in the energy sector.
The advice came after the latest report of Gross Domestic Product (GDP) figures, which showed the economy expanded by 4.43 per cent in real terms in the second quarter of 2026, its strongest quarterly growth in five years.
Analyzing the figures, Yusuf noted that despite positive overall growth in the second quarter, it was overshadowed by continued weakness in the electricity, gas and steam sector, which contracted 10.63 per cent during the quarter.
Although the contraction was an improvement over the 15.30 percent drop recorded in the first quarter, the CPPE chief said the performance remains unacceptable for an economy seeking to attract investment, expand industries and create millions of jobs.
In his policy briefing on the second quarter GDP report presented to the Nigerian Tribune on Tuesday in Lagos, Yusuf argued that a sustained recovery in electricity supply must become a central pillar of Nigeria’s economic and industrial strategy.
READ ALSO: Africa’s $200 billion energy gap attracts global investors: IPPG President Falade
According to him, the reform of the energy sector must be accelerated as a central pillar of the industrial and investment strategy.
Yusuf, former Director General of the Lagos Chamber of Commerce and Industry (LCCI), said reliable electricity would have a multiplier effect on the entire economy, reducing the huge costs currently incurred by businesses on diesel, petrol and alternative energy sources.
READ ALSO: Be good ambassadors for Nigeria, Governor Aliyu urges Corps members
“Better electricity supply will reduce production costs in manufacturing, agriculture, mining, information and communications technology, logistics and services.
It will also free up business capital currently tied up in self-generation, allowing companies to invest more in expansion, employment and productivity,” said the head of the CPPE.
He argued that Nigeria cannot achieve sustained industrialization as long as businesses remain heavily dependent on expensive self-generated electricity.
He called on the government and regulators to accelerate investments in generation, transmission and distribution.
He also urged authorities to address persistent gas supply constraints and liquidity problems in the electricity market.
Other recommendations include deeper metering, stronger commercial discipline, support for integrated generation and captive power, as well as greater deployment of industrial mini-grids and renewable energy systems.
The CPPE chief also called for the effective implementation of state electricity market reforms under the Electricity Law, with clear responsibility and measurable objectives to deliver reliable electricity to agricultural processing and industrial groups.
The economist expressed that the electricity sector should no longer be treated simply as an infrastructure challenge but as a fundamental issue of economic growth.
According to him, a change in the electricity sector would strengthen practically all other productive sectors by reducing operating costs and improving competitiveness.
The call for urgent reforms comes against a backdrop of stronger performance in several areas of the economy.
GDP growth of 4.43 percent in the second quarter represented an improvement from 3.89 percent in the first quarter and 4.23 percent in the second quarter of 2025.
Oil sector growth rose sharply from 2.57 percent in the first quarter to 7.31 percent in the second quarter, supported by an increase in average crude oil production from 1.55 million barrels per day to 1.72 million barrels per day.
The non-oil economy also strengthened, rising from 3.94 percent to 4.31 percent, while the services sector grew by 4.60 percent and accounted for 56.62 percent of real GDP.
Several productive sectors also registered growth.
Construction grew by 6.75 percent, financial and insurance services by 9.29 percent, real estate by 3.76 percent, and transportation and warehousing by 5.70 percent.
Information and communications technology remained one of the top-performing sectors, growing by 9.62 percent, while telecommunications grew by 10.38 percent.
Domestic refining was another major growth driver, expanding 43.94 percent in the second quarter after registering 37.46 percent growth in the first quarter.
Manufacturing, however, grew a more modest 3.24 percent, slightly below the 3.29 percent recorded in the first quarter.
WATCH THE BEST VIDEOS FROM NIGERIAN TRIBUNE TV