The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to shift the focus of its economic reform programme from macroeconomic stabilisation to productivity, investment, job creation and improved living standards.
Its Chief Executive Officer, Dr. Muda Yusuf, said while the reforms had delivered measurable gains in government revenues, foreign exchange market stability, external reserves, trade balance and investor confidence, the benefits had yet to fully translate into improved welfare for households and businesses.
The organisation said the next phase of the reform programme should prioritise reducing the structural costs of doing business, boosting productive-sector growth and ensuring that improved government revenues translate into tangible development outcomes.
According to CPPE, Nigeria’s real Gross Domestic Product (GDP) growth strengthened to 3.89 per cent in the first quarter of 2026, compared with 3.13 per cent in the corresponding quarter of 2025, indicating an improvement in economic activity.
It, however, stressed that stronger macroeconomic indicators should not be treated as an end in themselves, arguing that the ultimate measure of reform success should be their impact on productivity, investment, employment, incomes and living standards.
“Macroeconomic stability is a means, not an end. The real test is whether stability translates into higher productivity, stronger investment, more jobs, lower poverty and improved living standards,” CPPE said.
The private-sector advocacy group noted that this transmission remained incomplete, as households continued to face pressure on purchasing power, while businesses were still contending with high energy, financing, logistics and regulatory costs.
It therefore called for a stronger emphasis on supply-side reforms to address the structural constraints limiting the competitiveness of Nigerian businesses and the expansion of productive activities.
CPPE identified electricity supply, logistics, insecurity, agricultural productivity, infrastructure, regulatory costs and the cost of capital as some of the major structural constraints requiring urgent policy attention.
It expressed particular concern over developments in the power sector, noting that the electricity sector contracted by 15.3 per cent in the first quarter of 2026.
This contrasted with growth recorded in manufacturing and agriculture, which expanded by 3.29 per cent and 3.15 per cent respectively during the period.
CPPE argued that sustained growth in productive sectors would require a significant reduction in the cost of electricity, transportation, logistics, financing and regulatory compliance.
The organisation also called for a trade policy that supports domestic productive capacity, stressing the need for calibrated protection for industries and agricultural producers with credible local capacity against unfair import competition.
At the same time, it said producers should retain competitive access to critical inputs that cannot be adequately sourced locally, warning that excessive restrictions on imports could undermine domestic production.
CPPE also highlighted the burden imposed by the prevailing high-interest-rate environment on businesses and investors.
It argued that as inflation continues to moderate, stronger coordination between fiscal and monetary authorities should create room for a gradual reduction in financing costs without compromising macroeconomic stability.
According to the organisation, lower financing costs would be critical to improving private-sector investment, expanding productive capacity and supporting employment generation.
It said the policy environment should increasingly focus on creating conditions that enable businesses to invest, expand operations and generate sustainable employment.
CPPE further called for greater accountability at the subnational level, following the significant expansion in the fiscal space of state governments through higher statutory allocations and, in some cases, improved internally generated revenues.
It said the increased resources available to states should translate into measurable improvements in infrastructure and public services.
The organisation urged citizens to demand clear outcomes in areas such as roads, healthcare, public transportation, education, agricultural infrastructure, security, electricity and enterprise support.
“Higher revenues must produce a visible development and welfare dividend, rather than simply finance higher recurrent expenditure and prestige projects,” it said.
CPPE maintained that stronger state revenues should be reflected in improved economic opportunities and living conditions for citizens rather than merely increased government spending.
Despite its concerns over the adjustment costs and incomplete transmission of the reforms, CPPE said the government should not reverse the policy direction.
The organisation warned that reversing the reforms could undermine investor confidence, weaken fiscal stability, destabilise the foreign exchange market and reintroduce economic distortions that the reforms were designed to correct.
It therefore called for the reform trajectory to be sustained while implementation is continuously refined in response to emerging economic realities.
According to CPPE, reform instruments should be recalibrated based on evidence, implementation experience and their impact on businesses and households rather than abandoned altogether.
The organisation commended the Minister of Finance for presenting an economic reform scorecard, describing the disclosure as an important step towards improving transparency and strengthening public confidence in the reform process.
It said the data presented by the minister provided greater clarity on the fiscal and macroeconomic outcomes of the reforms and helped address concerns surrounding their implementation.
CPPE also welcomed what it described as the minister’s balanced acknowledgement of both the gains and adjustment costs associated with the reforms.
The organisation said transparency and accountability would remain critical to sustaining public confidence in the reform programme.
CPPE stressed that Nigeria’s economic policy should now 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.
It said achieving this transition would require sustained policy consistency, stronger institutional coordination and a greater focus on reducing the structural constraints that continue to limit private-sector investment and economic competitiveness.
(The Whistler)