The Centre for the Promotion of Private Enterprise has urged the Federal Government to prioritise productivity, infrastructure development, and industrial competitiveness. This call comes as improvements in Nigeria's macroeconomic indicators have yet to deliver substantial relief to households and businesses struggling with high living and operating costs. According to Dr. Muda Yusuf, Chief Executive Officer of CPPE, recent economic reforms have established a stronger foundation for growth but have not sufficiently improved the welfare of ordinary Nigerians.
Dr. Yusuf noted that Nigeria's real Gross Domestic Product growth increased from 3.38 per cent in 2024 to 3.87 per cent in 2025 before accelerating to 4.43 per cent year-on-year in the second quarter of 2026. He also highlighted the moderation in headline inflation to 15.39 per cent in August 2026 and the Central Bank of Nigeria's decision to reduce its monetary policy rate to 23 per cent in September. Additionally, revenues, reserves, and exchange rate stability have improved markedly.
Despite these economic gains, Dr. Yusuf explained that the cumulative impact of previous price increases continues to erode household purchasing power and weaken consumer demand. The combined effects of higher petrol prices, exchange rate adjustments, and global food and energy shocks have significantly increased the cost of essential goods and services. As a result, households are devoting a larger proportion of their earnings to food, transportation, electricity, and other basic necessities.
Businesses are experiencing similar difficulties, with rising production expenses, transportation charges, and borrowing costs undermining profitability and limiting their capacity to expand operations. Dr. Yusuf identified insecurity, unreliable electricity supply, inadequate transportation infrastructure, inefficient ports, limited access to finance, and regulatory uncertainty as major constraints preventing businesses from expanding production and competing effectively.
To address these challenges, Dr. Yusuf urged the government to implement a comprehensive productivity agenda capable of addressing the longstanding challenges confronting farmers, manufacturers, and small businesses. This agenda should include targeted interventions reflecting the specific operational needs of different sectors of the economy. For instance, a farmer needs security, irrigation, storage, and access roads to increase output, while a manufacturer needs reliable electricity, efficient ports, and predictable regulation to compete.
Dr. Yusuf warned that unless the government tackles these structural weaknesses, improvements in economic growth and other headline indicators will have limited effects on employment generation, household incomes, and the overall standard of living. He consequently urged policymakers to prioritise improvements in electricity supply, strengthen security across agricultural and commercial corridors, modernise port operations and transportation networks, and introduce measures to increase agricultural productivity and industrial competitiveness.
The CPPE chief also called for a review of government support for domestic industries, arguing that public incentives and other forms of assistance should be linked to measurable improvements in investment, operational efficiency, and export performance. Additionally, he emphasised that the responsibilities of the three tiers of government are interdependent and must be coordinated to ensure that investments in infrastructure and public services produce meaningful economic outcomes.
Key points
- Centre for Promotion of Private Enterprise urges government to prioritise productivity reforms
- Recent economic reforms have not sufficiently improved welfare of ordinary Nigerians
- Government support for domestic industries should be linked to measurable improvements
