As Nigeria celebrates 66 years of independence, the Centre for the Promotion of Private Enterprise has assessed the country's economic reforms. While recent changes have improved macroeconomic fundamentals, they have not yet provided relief to households and businesses. The Centre's CEO, Dr. Muda Yusuf, noted that Nigeria's economy has undergone significant changes since independence, shifting from agriculture-dominated exports to petroleum-led public finance.
The Nigerian economy has expanded into various sectors, including telecommunications, banking, trade, construction, entertainment, and digital services. Large investments in cement, fertilizer, and refining have demonstrated the country's potential for large-scale production. However, the Centre argues that Nigeria's economic transformation is still incomplete. Many farms produce low yields, manufacturers face high power and logistics costs, and employment is concentrated in low-return activities.
Dr. Yusuf acknowledged that Nigeria has successfully implemented reforms in the past, such as telecommunications liberalization, which increased access and attracted private investment. Banking and payments reforms have also widened financial inclusion. However, he noted that the country's dependence on oil revenue, inconsistent policies, and underinvestment in infrastructure have come at a high cost. Oil price fluctuations have repeatedly disrupted budgets and foreign exchange supply.
The current administration has implemented reforms, including petrol subsidy removal, exchange rate adjustments, and revenue measures, which have addressed long-standing fiscal and foreign exchange distortions. According to the Centre, these reforms have led to positive macroeconomic results, including a rise in real GDP growth from 3.38% in 2024 to 3.87% in 2025 and 4.43% year-on-year in the second quarter of 2026.
Despite these gains, the Centre notes that they have not yet translated into sufficient relief for households and businesses. Inflation has eased, but prices remain high, and the combined effects of petrol price increases, exchange rate adjustments, and global shocks have reduced purchasing power. Households now spend a larger share of their income on essentials like transport, food, and electricity, while businesses face higher input, distribution, and financing costs.
Dr. Yusuf urged the government to prioritize a productivity agenda that lowers the cost of producing in Nigeria. This agenda should focus on improving power supply, security in farming and commercial corridors, ports and logistics, agricultural yields, industrial competitiveness, and enterprise-relevant skills. Public support for industry should be tied to investment, efficiency, and export performance.
The Centre's call for economic reforms to benefit households and businesses comes as Nigeria continues to navigate its economic challenges. With a stronger foundation in place, the country can now focus on ensuring that its economic growth translates into shared prosperity for its citizens. The government's response to these recommendations and its future economic plans will be crucial in determining the country's progress.
Key points
- The Centre for Promotion of Private Enterprise argues that Nigeria's economic reforms have not yet translated into relief for households and businesses.
- The country's economic transformation remains incomplete, with many farms producing low yields and manufacturers facing high power and logistics costs.
- Dr. Muda Yusuf urges the government to prioritize a productivity agenda that lowers the cost of producing in Nigeria.
