Follow Us on Google
•Urges FG to convert reform gains into tangible welfare benefits
The Centre for the Promotion of Private Enterprise (CPPE) has endorsed the IMF’s positive assessment of Nigeria’s economic reforms but stressed that the reforms will only be truly successful and meaningful if they improve the daily lives of Nigerians through lower prices, better jobs and higher living standards.
In a detailed response to the IMF’s 2026 Article IV Consultation Report, CPPE’s Chief Executive Officer, Dr. Muda Yusuf, acknowledged that reforms introduced by the federal government over the past three years have delivered notable improvements in key economic indicators, including foreign exchange stability, external reserves, investor confidence and capital inflows.
According to the private sector advocacy group, the IMF’s favourable assessment aligns with the views of many stakeholders in Nigeria’s business community who have consistently argued that the reforms have helped restore credibility and predictability to economic management.
“The economy is gradually moving from a regime of instability to one of greater predictability,” Yusuf said, noting that stronger performances by many listed companies and improved external sector balances reflect the positive outcomes of the stabilization measures.
However, the CPPE stressed that macroeconomic stability alone cannot be considered a sufficient measure of success.
The organisation argued that economic reforms should ultimately be judged by their impact on citizens’ welfare, particularly in areas such as food prices, employment opportunities, income levels and overall living standards.
While commending the IMF for highlighting the persistence of poverty and food insecurity despite the reforms, Yusuf said policymakers must now focus on ensuring that economic gains are felt by households and businesses. “The challenge before policymakers is no longer merely one of economic stabilization; it is increasingly one of inclusive prosperity,” he said.
A major area of concern raised by the CPPE is the continued reliance on tight monetary policy and elevated interest rates to combat inflation and support exchange-rate stability.
Although the organisation acknowledged that higher interest rates have helped moderate inflationary pressures and stabilize the naira, it warned that prolonged monetary tightening is imposing severe costs on businesses and the wider economy.
According to Yusuf, borrowing costs in Nigeria have become increasingly prohibitive for productive investments, making it difficult for businesses to expand operations, invest in new projects or create jobs.
He also pointed to the growing attractiveness of government securities, arguing that high yields on treasury bills and bonds are encouraging banks and investors to channel funds into risk-free government instruments rather than financing productive sectors such as manufacturing and agriculture.
“An economy cannot achieve sustainable development when financial capital earns higher returns from government financial instruments than from supporting enterprise, innovation and industrialization,” he stated.
The CPPE further disagreed with what it described as the IMF’s limited appreciation of development finance in a country like Nigeria.
Yusuf argued that sectors critical to economic transformation, including agriculture, manufacturing, housing and infrastructure, cannot rely solely on market-based financing because commercial lending remains short-term, expensive and highly risk-averse.
He maintained that targeted intervention funds and development finance programmes remain necessary to bridge structural financing gaps and support long-term investments that can boost productivity and job creation.
“A purely market-driven financing model cannot adequately address Nigeria’s structural financing gaps,” he said, noting that agriculture and infrastructure projects require affordable and patient capital that conventional banks are often unwilling to provide.
Other News
The CPPE also expressed concern about the impact of high interest rates on public finances.
It noted that elevated bond yields have significantly increased the cost of domestic borrowing, leading to rising debt-service obligations and reducing the fiscal space available for critical investments in infrastructure, healthcare and education.
The organisation welcomed recent indications by the Minister of Finance that the Federal Government intends to refinance parts of its debt portfolio to lower financing costs, describing the move as a step in the right direction.
On external sector management, CPPE agreed with the IMF’s concerns over Nigeria’s growing dependence on foreign portfolio investments.
While portfolio inflows have contributed to foreign exchange stability and improved liquidity, Yusuf warned that such investments remain highly volatile and vulnerable to sudden reversals triggered by changes in global market sentiment.
He said Nigeria must focus on attracting more foreign direct investment, boosting exports and strengthening domestic productivity if it hopes to build sustainable economic resilience.
“Hot money can stabilize an economy temporarily; productive investment is what transforms it permanently,” he said.
The organisation also questioned the continued emphasis on conditional cash transfers as the cornerstone of Nigeria’s social protection framework.
Instead, it advocated greater public investment in agriculture, transportation infrastructure, healthcare, education and rural development, arguing that such measures would address the root causes of poverty and high living costs.
According to CPPE, investments that lower food prices, reduce transportation expenses and improve access to essential services would have a more lasting impact on poverty reduction than direct cash handouts.
“The most effective poverty reduction programme is one that reduces the cost of living and expands economic opportunities,” Yusuf stated.
The group further faulted the IMF report for paying insufficient attention to the role of state governments in driving economic transformation.
It observed that with increased federation allocations in recent years, state governments now control larger fiscal resources and have greater influence over sectors such as food production, rural infrastructure, basic education, primary healthcare and local security.
CPPE argued that meaningful economic reforms and poverty reduction efforts cannot be achieved through federal initiatives alone.
“Economic transformation in a federation cannot be driven from the centre alone,” Yusuf said.
He concluded that while macroeconomic stability has helped pull Nigeria away from economic crisis, the next phase of reform must focus on delivering shared prosperity and tangible improvements in the lives of citizens if public support for the reform agenda is to be sustained.
