Nigeria Outlook: FX Stability Critical to Growth as Fiscal Revenue Surges

Nigeria's macroeconomic landscape in 2026 shows signs of structural adjustment as financial leaders prioritize FX predictability and fiscal revenues hit record levels to drive long-term infrastructure investment.

FX Stability Prioritized Over Rate Levels

Babatunde Folawiyo of Coronation Merchant Bank emphasizes that FX market predictability is more vital than interest rates for FDI. A stable NGN is considered the linchpin for corporate expansion.

Fiscal Consolidation & Infrastructure Support

Recent fiscal data indicates a shift toward non-oil revenue strength, reducing the reliance on domestic borrowing and providing a buffer for the Naira.

• VAT allocations: N7.73 trillion in 2025
• Year-on-year growth: 26.46% increase from 2024
• Previous revenue: N6.11 trillion
• Strategic Partner: IFC (International Finance Corporation)