The Presidency’s position comes as the Federal Government continues to implement wide-ranging economic reforms aimed at improving macroeconomic stability, encouraging private-sector investment and creating a more predictable environment for businesses.
Presidency Highlights Reform Impact
According to Abdullahi, the reforms introduced by the Tinubu administration are helping to rebuild confidence among businesses and create an environment in which entrepreneurs can pursue new opportunities.
She said the administration remained committed to supporting businesses and creating conditions that would enable entrepreneurs to contribute more effectively to economic development.
The comments place private-sector participation at the centre of the government’s broader economic strategy.
For businesses, the quality of the operating environment depends on factors including access to finance, taxation, infrastructure, foreign-exchange stability, energy costs and the predictability of government policies.
Reforms Seek to Improve Investment Conditions
The Federal Government has pursued several economic reforms since President Tinubu assumed office, with the stated objective of improving fiscal sustainability and strengthening the foundations for long-term economic growth.
The reforms have also sought to improve the functioning of key markets and create greater incentives for private investment.
The latest GDP data provides some evidence of stronger economic activity. Nigeria’s real GDP grew by 4.43% year-on-year in Q2 2026, compared with 3.89% in Q1, according to the National Bureau of Statistics.
However, the improvement in headline economic growth does not automatically mean that all businesses or households have experienced similar gains.
GDP Growth Provides Positive Backdrop
The 4.43% GDP expansion provides a more favourable backdrop for the government’s argument that economic conditions are improving.
Both oil and non-oil activities contributed to the Q2 expansion, while services remained the largest component of economic output.
For investors, sustained economic growth can strengthen confidence in future demand and improve the potential returns from long-term investments.
The property sector can benefit from this environment when stronger economic activity translates into increased employment, business expansion and household purchasing power.
Real Estate Can Benefit From Stronger Business Activity
Improved business confidence can have a direct impact on commercial and residential property demand.
When businesses expand, they may require additional offices, retail outlets, warehouses, industrial facilities and staff accommodation.
Entrepreneurial activity can also increase demand for smaller commercial spaces, mixed-use developments and affordable rental accommodation.
For property developers, a broader expansion in private-sector activity can therefore create additional demand beyond the traditional residential market.
Infrastructure Investment Remains Important
Business confidence is also closely linked to the quality and availability of infrastructure.
Poor roads, unreliable electricity, inadequate water supply and limited public transport can increase operating costs for businesses and reduce the attractiveness of particular locations.
For the property market, infrastructure can determine whether new areas become commercially viable for housing and business development.
Greater investment in transport networks, electricity and other public infrastructure can therefore support both business expansion and property development.
Housing Demand Depends on Household Income
Although stronger business confidence can support the property market, the housing impact will ultimately depend on whether economic gains translate into higher household incomes.
Nigeria’s housing market continues to face an affordability challenge.
High construction costs, elevated rents, limited mortgage access and relatively weak household purchasing power continue to restrict effective demand.
Economic reforms will therefore have a more meaningful impact on housing if they produce sustained employment and income growth alongside broader economic expansion.
Private Investment Could Support Housing Supply
Greater confidence among investors could also support new housing supply.
Property development requires significant upfront capital, and developers face considerable exposure to changes in interest rates, material costs and demand.
Where investors have greater confidence in the economic outlook, they may be more willing to commit capital to projects with longer development timelines.
This could support the construction of residential estates, commercial property and mixed-use developments.
However, access to affordable development finance will remain important because high borrowing costs can limit the number of viable projects.
Business Confidence Must Be Matched by Affordability
The Presidency’s assessment of improving business confidence represents a positive signal, but confidence alone cannot resolve structural challenges in the housing market.
Developers still face high land acquisition costs, expensive building materials, infrastructure deficits and financing constraints.
Households also need access to mortgages and other long-term financing options to convert housing demand into effective purchasing power.
The broader economic reform agenda will therefore have greater relevance to housing if it improves both the supply and financing sides of the market.
Reforms Could Strengthen Investor Planning
Predictability remains particularly important for property and infrastructure investors.
Real estate projects often require several years from land acquisition and planning through construction and sales.
Investors therefore need confidence that the economic and regulatory environment will remain sufficiently predictable throughout the development cycle.
Greater stability in foreign exchange, taxation, interest rates and government policy could make it easier for investors to model project costs and expected returns.
Entrepreneurs Could Drive New Property Demand
The Presidency’s emphasis on entrepreneurship also has implications for the built environment.
Small and medium-sized businesses account for significant economic activity and generate demand for commercial premises, residential accommodation and supporting infrastructure.
As entrepreneurs establish or expand businesses, demand can emerge for flexible offices, shops, warehouses, workshops and affordable housing close to employment centres.
This can create opportunities for developers that understand the needs of emerging businesses rather than focusing exclusively on large corporate occupiers.
Economic Growth Needs to Reach Households
The latest economic indicators point to stronger growth, but policymakers still face the challenge of ensuring that economic improvements translate into better living conditions.
GDP growth can coexist with high living costs if increases in output do not generate sufficient improvements in real household incomes.
For the housing market, this distinction matters.
Higher rents and property prices without corresponding income growth can widen the affordability gap even when the broader economy expands.
Outlook
The Presidency’s latest assessment suggests that the Federal Government believes its economic reforms are beginning to improve business confidence and create a more supportive environment for entrepreneurship.
The stronger Q2 GDP performance provides an encouraging macroeconomic backdrop, with the economy expanding by 4.43% year-on-year.
For Nigeria’s housing and property markets, however, the more important test will be whether improving business activity translates into stronger incomes, increased investment, lower financing constraints and greater housing supply.
If those conditions develop alongside sustained economic growth, stronger private-sector confidence could support new investment across Nigeria’s residential, commercial and infrastructure markets.
