The Centre for the Promotion of Private Enterprise (CPPE) has said that the recent announcement of the prerogative of mercy to certain beneficiaries, if not reviewed and rationalised, could have far-reaching implications on investments and the Nigerian economy.
It expressed its concerns in a statement on Sunday, October 19, by its Managing Director/Chief Executive Officer, Dr Muda Yusuf.
According to the Centre, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, did the right thing by clarifying that the published list of beneficiaries of the presidential pardon was not final.
It said the clarification, coming from the Justice Minister, who is also the Chairman of the Presidential Advisory Committee on Prerogative of Mercy, reflects the responsiveness and sensitivity of the administration to public sentiments, which is a critical democratic value.
It, however, expressed worries that the inclusion of persons convicted of corruption, financial crimes, murder, drug trafficking, and illegal mining raised profound concerns about governance credibility, institutional integrity, and investor confidence.
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“While the prerogative of mercy is a legitimate constitutional instrument, its application to serious economic and financial offences and other criminal acts demands utmost discretion, transparency, and alignment with Nigeria’s commitments to anti-corruption, drug control and the sanctity of human life,” the CPPE stated.
Pinnacle Daily reported recently that the federal government declared a presidential pardon for 175 convicts, of whom 41 are illegal miners, 28 are drug traffickers, and 22 are murderers, which was greeted with public outcry.
Socio-economic consequences
According to the Centre, extending clemency and pardon to persons convicted of corruption, financial fraud, illegal mining, murder, and drug-related crimes has far-reaching economic and social consequences.
It pointed out that illegal mining undermines legitimate enterprise, depletes national revenue, and fuels insecurity in mining communities.
It said corruption and financial crimes distort markets, weaken institutions, and discourage fair competition, adding that drug trafficking and related offences tarnish Nigeria’s global image, exacerbate insecurity, and impose grave social costs.
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“At a time when Nigeria is striving to diversify its economy, attract investment, and restore global confidence, such acts of liberal clemency risk sending disturbing and counterproductive signals,” CPPE warned.
It portends negative impacts
The CPPE believes that leniency toward financial and economic crimes erodes deterrence, weakens enforcement, and signals tolerance for misconduct, stressing that a soft sanction regime undermines respect for law and governance credibility.
It noted that investors’ confidence thrives on predictability, fairness, and justice.
But when those convicted of economic or financial crimes are pardoned, it raises questions about policy consistency, contract sanctity, and investment security, thereby discouraging both domestic and foreign investors, the CPPE warned.
It argued further that undue clemency could reverse gains in governance credibility and reinforce perceptions of institutional weakness, saying such perceptions affect sovereign risk ratings, capital inflows, and the attractiveness of Nigeria’s investment climate.
It also stated that granting mercy to economic offenders can demoralise law enforcement agencies.
“Years of diligent investigation and prosecution risk being undermined, weakening institutional resolve and emboldening impunity.
“The CPPE particularly acknowledges, in this regard, the incredible achievements of the National Drug Law Enforcement Agency (NDLEA), which have earned global recognition,” the Centre maintained.
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Another implementation is that a lenient sanction environment fosters impunity, weakens ethical standards, and erodes public trust in justice institutions.
“Over time, it discourages productivity, nurtures rent-seeking, and sustains unproductive and illicit economic behaviour. Sustained economic growth and inclusive prosperity depend on credibility, accountability, and fairness in governance,” CPPE said.
Call for review, rationalisation
The CPPE urges the federal government to, among other decisions, urgently review and rationalise the list of beneficiaries of the prerogative of mercy.
Reaffirm Nigeria’s zero-tolerance position on corruption, drug trafficking, illegal mining, and financial crimes, while upholding institutional integrity and ensuring that justice is never compromised for convenience or political expediency.
It also urged the government to strengthen transparency and accountability in the exercise of executive clemency to safeguard public confidence and investor trust.
“Nigeria’s aspiration to build a competitive, diversified, and globally respected economy rests on the credibility of its institutions and the integrity of its governance. The perception of weak sanction regimes toward economic and financial crimes is incompatible with this goal.
“To preserve investor confidence and social stability, the government must demonstrate an unwavering commitment to accountability, effective consequence management and the rule of law. The credibility of Nigeria’s economic reform and investment promotion drive depends largely on it,” CPPE submitted.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
