Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, has expressed concerns that increasing political violence, intimidation, and inflammatory rhetoric before the 2027 general elections could have adverse effects on Nigeria's economy. He stated that such actions could undermine investor confidence, trigger capital flight, and exacerbate the country's economic challenges. Yusuf emphasized that political competition is a legitimate aspect of democracy but warned that when it turns violent, the consequences extend beyond politics to impact investment decisions, business operations, employment, and economic growth.
Yusuf's policy brief, titled "Political Violence and Institutional Neutrality: Safeguarding Investor Confidence Ahead of the 2027 Elections," urged political leaders, parties, and state institutions to exercise restraint and uphold due process. He lamented the politicization of state institutions, particularly the Independent National Electoral Commission, security agencies, and the judiciary, which could weaken the rule of law and increase business uncertainty. This, in turn, could threaten the country's investment outlook and undermine economic stability.
According to Yusuf, Nigeria cannot afford an electoral process that compounds its existing economic vulnerabilities. He identified political violence as a significant economic risk that could discourage investments, delay business expansion plans, and increase investor risk premiums. The possible consequences of prolonged political instability include business disruptions, capital flight, foreign exchange volatility, and rising operating costs. Yusuf stressed that political clashes, insecurity, and violent protests can disrupt commercial activities, supply chains, logistics, and market access.
Yusuf called on security agencies to act proactively and impartially to prevent violence and ensure that perpetrators and sponsors are held accountable. He emphasized that political violence must be condemned, regardless of its perpetrators or beneficiaries, and that electoral ambition must not take precedence over the security of lives, property, and investments. Yusuf also urged the Independent National Electoral Commission to operate independently, transparently, and professionally, without political interference or intimidation.
The CPPE CEO stressed that institutional neutrality is crucial for a peaceful political transition and a stable investment climate. He urged security agencies to provide impartial protection for political actors, electoral officials, citizens, and economic assets. Additionally, Yusuf called on the judiciary to remain independent and accessible to ensure credible, timely, and lawful resolution of electoral disputes. He warned against the weaponization of regulatory and law enforcement institutions for political intimidation or partisan advantage.
Yusuf outlined five priority actions for political leaders and state institutions to prevent a deterioration of the political and economic environment. These include zero tolerance for political violence, protection of institutional independence, responsible political communication, safeguarding economic activities, and preserving policy and administrative stability. He urged political parties and their leaders to publicly reject violence, restrain their supporters, and cooperate with lawful investigations and prosecution of offenders.
Yusuf concluded by warning that the conduct of political actors and the integrity of state institutions during the 2027 electoral cycle would significantly determine Nigeria's political risk profile and investment outlook. He emphasized that a peaceful electoral environment, credible institutions, and respect for the rule of law would help sustain investor confidence and protect business continuity. Conversely, escalating violence, institutional partisanship, and electoral uncertainty could weaken investment appetite, raise the cost of doing business, and undermine economic recovery.
Key points
- Dr. Muda Yusuf warns that rising political violence could undermine investor confidence and worsen Nigeria's economic vulnerabilities.
- The CPPE CEO urges political leaders and state institutions to exercise restraint and uphold due process to safeguard investor confidence.
- Yusuf emphasizes the importance of institutional neutrality for a peaceful political transition and a stable investment climate.
Reporting sources
- The Guardian · The Guardian
