Nigeria’s economy is expected to record stronger growth in 2026, with output projected to expand by about 4.2 per cent, anchored on sustained economic reforms, improved fiscal performance and capital market activities, an economic expert and Associate Director & Strategy at PwC Nigeria, Kolawole Odunlami, has said.

Speaking at the 2025 FSI gala night organised by Huawei on 12th December, Odunlami, who was the guest speaker, highlighted critical sectors that would drive the country’s growth in 2026, which include the financial services, information and communications technology (ICT), and the capital market.

He also said that government revenue performance, which has improved significantly, is expected to strengthen further in 2026 as new tax reforms take effect, adding that employees are not likely to see higher take-home pay.

He, however, cautioned that several economic risks including insecurity, pricing pressures, and geopolitical crises, among others must be carefully managed to sustain growth.

He explained that insecurity has continued to affect agricultural production, particularly food supply from the northern region, contributing significantly to rising inflation.

“The agricultural sector in the country is truly affected by insecurity. 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 stated.

He also warned of potential external risks associated with the insecurity crisis in the country if not urgently addressed, noting that if the United States sanctions the country, it could cripple some sectoral trade/industries such as oil & gas, banking, defense, technology and mining, including limits on critical inputs and services.

Huawei Technologies recently hosted its Financial Services Industry (FSI) Gala Night in Nigeria, bringing together banking leaders, policymakers, economists, and technology executives to reflect on the country’s economic journey in 2025 and the future of digital finance.

Speaking earlier at the FSI Gala, the Chief Executive Officer of Huawei Nigeria, Chris Lu, traced the company’s overall success in 2025 to the economic reforms undertaken by the present administration.

He said that the year 2025 witnessed a stable forex market where the naira kept strong, restoring investors’ confidence.

He also lauded the team, customers and partners for their support to the brand and resilience, reaffirming the company’s commitment to digital transformation and innovation that enables a prosperous living in Nigeria.
In his remark, Chief Executive Officer, Huawei Global Digital Finance, Jason Cao, said that the firm is known for building resilient infrastructure in the digital finance sector, with AI intelligence that focuses on end-to-end users.

He noted that 7 banks in Nigeria are currently strengthening their digital financial service with their products.
He also observed that in the last ten years, mobile payments have drastically changed globally, calling for the adoption of inclusive, secure and real time platforms that ensure a safe digital finance system.

While appreciating Huawei’s customers and partners for their unwavering support towards the company, Huawei’s Director of FSI, Glarie Gao, congratulated winners of the Best Trainee Awards to outstanding participants from financial institutions, noting that the company is looking forward to conquering new heights in the new year.