As Nigeria marks 66 years of independence on October 1, the Centre for the Promotion of Private Enterprise (CPPE) has called for a shift from economic stabilisation to a stronger productivity agenda that can translate recent macroeconomic gains into higher incomes, jobs and improved living standards.
In a statement issued on Tuesday, September 29, CPPE Chief Executive Officer, Dr Muda Yusuf, noted that Nigeria had made significant economic changes since independence, with agriculture giving way to petroleum as the dominant source of public revenue, while telecommunications, banking, trade, construction, entertainment and digital services expanded opportunities for businesses and young people.
However, he said the country had diversified what it produces more than what it exports, while low farm yields, costly electricity and logistics, and the concentration of employment in low-return activities continued to limit economic progress.
“After six decades of growth, the decisive question is whether the economy can produce more value per worker and deliver rising real incomes,” Yusuf said.
Reforms need to translate into household relief
The business group said Nigeria had examples of reforms that delivered significant economic changes, citing telecommunications liberalisation and banking and payments reforms as evidence that Nigerian businesses can compete when policies are credible and markets remain open.
It, however, said the country had also paid a high price for dependence on oil revenue, inconsistent policies and inadequate infrastructure, with oil price swings, recessions, the COVID-19 pandemic, insecurity and global food and energy shocks exposing weaknesses in the economy.
CPPE said recent reforms, including petrol subsidy removal, exchange rate changes and revenue measures, had addressed longstanding fiscal and foreign exchange distortions.
It noted that real Gross Domestic Product (GDP), which measures the value of goods and services produced in the economy, increased from 3.38 per cent in 2024 to 3.87 per cent in 2025 and 4.43 per cent in the second quarter of 2026.
Headline inflation stood at 15.39 per cent in August, while the Central Bank of Nigeria reset its benchmark interest rate to 23 per cent in September.
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The group also noted that government revenues, foreign reserves and exchange rate stability had improved.
However, it raised worries that these gains had not yet translated sufficiently into relief for households and businesses.
According to CPPE, the effects of higher petrol prices, exchange rate adjustments and global food and energy shocks have reduced purchasing power, while transport, food, electricity and other essential expenses now consume a larger share of household income.
Businesses, it said, are facing similar pressures through higher production, distribution and financing costs.
“Inflation has eased, but prices remain far above their earlier levels,” CPPE said.
The group argued that the next phase of economic policy should therefore focus on raising productivity rather than relying mainly on improved headline economic indicators.
It said farmers need security, irrigation, storage and access roads to increase output, while manufacturers require reliable electricity, efficient ports and predictable regulation to compete.
Small businesses, it added, need affordable working capital and customers with sufficient purchasing power.
Urges productivity-focused government spending
CPPE urged the government to prioritise electricity supply, security along farming and commercial corridors, ports and logistics, agricultural yields, industrial competitiveness and skills needed by businesses.
It also called for public support for industries to be linked to investment, efficiency and export performance.
The objective, according to the group, should be to reduce the cost of producing goods and services in Nigeria and increase the supply of products that citizens can afford.
CPPE also called for clearer responsibilities and measurable outcomes across the three tiers of government.
It said the Federal Government should sustain macroeconomic stability while addressing national security, electricity and transport priorities.
State governments should improve land administration, roads, investment approvals, schools and healthcare, while local governments should maintain community infrastructure, provide basic services and end arbitrary levies imposed on small businesses.
The group said the responsibilities of the three levels of government were interconnected, noting that federal infrastructure would have limited impact if state and local roads left farms inaccessible.
It also warned that increased public revenue would have limited value if health centres lacked staff, schools lacked teachers and businesses continued to provide their own electricity and water.
CPPE therefore called for government at all levels to focus on measurable outcomes, including lower transport and production costs, higher farm yields, more reliable public services, better learning and health outcomes, and more productive jobs.
“At 66, Nigeria has the enterprise and resources to achieve far more,” Yusuf said.
“The priority is to convert the gains from reform into higher productivity—and to ensure that higher productivity is felt in the living standards of Nigerians.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X