- Warns That Reversing Economic Reforms Will Trigger Fresh Economic Dislocation
- Says Nigeria’s Next Reform Battle Is Productivity, Jobs
The Centre for the Promotion of Private Enterprise (CPPE) has thrown its weight behind the Federal Government’s ongoing economic reforms, but warned that the next phase must move beyond macroeconomic stabilisation to deliver jobs, higher productivity, stronger investment and improved living standards for Nigerians.
The group said reversing the reforms would be “profoundly damaging” to the economy, warning that such a move could undermine investor confidence, weaken fiscal stability and destabilise the foreign exchange market.
In a statement on Sunday, CPPE Chief Executive Officer, Dr Muda Yusuf, commended the Minister of Finance for presenting the economic reform scorecard, saying the data provided greater clarity on the fiscal and macroeconomic outcomes of the reforms.
Yusuf said the transparency was crucial to restoring confidence in the reform process, particularly because the government acknowledged both the gains and adjustment costs arising from the policies.
According to CPPE, the reforms have delivered measurable gains, including stronger government revenues, improved foreign exchange market stability, increased external reserves, an expanded trade surplus and renewed investor confidence.
The group also noted that real Gross Domestic Product (GDP) growth accelerated to 3.89 per cent in the first quarter of 2026, up from 3.13 per cent in Q1 2025.
“These are important foundations for investment and growth. But macroeconomic stability is a means, not an end,” Yusuf said.
He warned that the real test of the reforms would be whether the gains translate into “higher productivity, stronger investment, more jobs, lower poverty and improved living standards.”
CPPE, however, said that transmission remained incomplete, pointing to continued pressure on purchasing power and the high cost of energy, financing, logistics and regulatory compliance confronting businesses.
“The next phase of reform must therefore focus much more strongly on productivity, competitiveness and household welfare,” Yusuf said.
States Must Turn Higher Revenues Into Development
CPPE also raised the alarm over the need for greater accountability at the subnational level, saying increased statutory allocations and internally generated revenues had significantly expanded the fiscal space available to state governments.
The organisation urged citizens to demand measurable development outcomes from the increased revenues, particularly in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.
“Higher revenues must produce a visible development and welfare dividend, rather than simply finance higher recurrent expenditure and prestige projects,” Yusuf warned.
Electricity, Logistics, Capital Costs Threaten Growth
The CPPE chief executive identified electricity, logistics, insecurity, agricultural productivity, infrastructure, regulatory costs and the cost of capital as major structural constraints that must become the next frontier of Nigeria’s economic reforms.
He expressed concern over the contraction of the electricity sector by 15.3 per cent in Q1 2026, even as manufacturing grew by 3.29 per cent and agriculture by 3.15 per cent.
Yusuf argued that accelerating growth in productive sectors would require a decisive reduction in the structural costs confronting businesses.
On trade policy, CPPE called for measures that protect industries and agricultural producers with credible local capacity from unfair import competition while ensuring that businesses retain access to critical inputs that cannot be adequately sourced locally.
The group also expressed concern over high interest rates, urging stronger fiscal and monetary coordination as inflation moderates to create room for a gradual reduction in financing costs without threatening economic stability.
‘Reversing Reforms Would Be Profoundly Damaging’
Despite its criticisms, CPPE firmly rejected calls for a reversal of the government’s economic reforms.
“CPPE believes that reversing the reforms would be profoundly damaging to the economy,” Yusuf declared.
According to him, reversing the policies would undermine investor confidence, weaken fiscal stability, destabilise the foreign exchange market and revive distortions that the reforms were designed to eliminate.
“Such a reversal could trigger significant economic dislocations and erode the gains already achieved,” he warned.
Yusuf said the reform trajectory should therefore be sustained, but continuously refined in response to emerging economic realities.
He stressed that reform instruments must be recalibrated based on evidence, implementation experience and their actual impact on businesses and households.
“The next phase must move decisively from stabilisation to productivity; from higher government revenues to better development outcomes; and from improving macroeconomic indicators to tangible gains in jobs, incomes and living standards,” he said.
