Nigeria’s Economic Reforms Set to Boost Consumer Spending and Drive Growth in 2026
Nigeria’s ongoing economic reforms are set to ignite consumer spending and business growth, according to the Mastercard Economics Institute (MEI). In its Economic Outlook 2026, Mastercard highlighted that fiscal reforms and strategic investments are creating new opportunities for households and enterprises alike. The report also notes that global policy shifts that dominated headlines in 2025 will continue to shape economies worldwide this year.
Across Sub-Saharan Africa, growth is expected to strengthen in 2026, supported by easing inflation, resilient consumer demand, and ongoing infrastructure projects. For Nigeria specifically, the economy is projected to grow by four per cent, surpassing the global forecast of 3.1 per cent. Experts say this expansion is largely driven by increased consumer spending and major investment initiatives aimed at boosting business activity.
Moderate inflation is expected to persist across Africa, aided by a weaker U.S. dollar and lower energy prices. This gives central banks more flexibility to cut interest rates and further stimulate spending. Mastercard data already shows that Nigerian consumers increased discretionary spending in the first half of 2025, particularly in travel and lifestyle sectors, reflecting growing confidence in the economy.
Mastercard’s Chief Economist for EEMEA, Khatija Haque, emphasized that Nigeria’s reform momentum and slowing inflation are restoring purchasing power. She added that, despite global trade challenges, strong domestic demand and diversification into strategic industries are expected to sustain growth throughout 2026.
Dr. Folasade Femi-Lawal, Country Manager for West Africa at Mastercard, noted that the reforms are unlocking new avenues for growth—from everyday consumer spending to tech-driven enterprises. “Nigeria’s dynamic consumer market positions the country to play a pivotal role in Africa’s economic future,” she said. The report further highlights that structural reforms and improved household finances are already encouraging spending on services like travel, leisure, and lifestyle, signaling optimism for the year ahead.
source: The Guardian