The Centre for the Promotion of Private Enterprise (CPPE) has asked the Nigerian policymakers to review the economic reform agenda for inclusive welfare outcomes, having achieved macroeconomic stabilisation.
The private sector think tank which acknowledged the positive assessment of Nigeriaโs reform progress in the International Monetary Fund (IMF) Article IV Consultation Report of improvements in macroeconomic stability, also aligns with the Fund’s position that poverty has increased in the country, while the economic reforms of the present administration have not positively affected the living standards of the citizens.
Nigerian government has evolved some social investment policies like cash transfer programmes to reach vulnerable households in 2023 after the economic reforms of the administration triggered poor living conditions occasioned by rising prices of goods and food.
However, CPPE questioned the effectiveness of cash transfer programmes as the central pillar of social protection, arguing that greater impact would be achieved through investments that directly reduce the cost of living. It advocated increased spending on agriculture, transport infrastructure, healthcare, education and rural development as more sustainable pathways to poverty reduction.
According to CPPE, recent policy measures have contributed to greater stability in the foreign exchange market, improved external sector balances, strengthened investor confidence, and enhanced policy credibility. The organisation also highlighted moderation in exchange rate volatility, improved foreign reserves, recovery in capital inflows, and stronger performance by listed companies as evidence of emerging macroeconomic gains.
It observed that the economy is gradually transitioning from a period of instability to one of improved predictability, describing this as a critical foundation for investment growth, productivity expansion and long-term economic sustainability.
However, CPPE stressed that the success of economic reform cannot be measured solely by macroeconomic indicators, arguing that the real test of policy effectiveness lies in tangible improvements in living standards, including lower food prices, job creation, rising incomes, and broader economic inclusion.
The organisation warned against excessive reliance on strict monetary tightening, noting that while high interest rates have supported inflation moderation and exchange rate stability, they are increasingly constraining productive investment, enterprise expansion and employment generation. It further cautioned that elevated yields on government securities are intensifying capital crowding out, as financial resources are diverted away from the real sector.
CPPE maintained that development finance remains critical in addressing Nigeriaโs structural financing gaps, particularly in agriculture, manufacturing, housing and infrastructure. It argued that market-driven financing alone is insufficient in an economy where long-term, patient capital is required to support productive transformation.
The group also raised concerns about the rising burden of debt servicing, linking it to high domestic borrowing costs and shrinking fiscal space. It noted that a significant portion of government revenue is increasingly allocated to debt repayment, limiting spending on infrastructure, education, healthcare and other growth-enhancing sectors. CPPE, however, welcomed moves toward debt refinancing as a step in the right direction to reduce financing pressures.
On external sector dynamics, the organisation cautioned against over-reliance on volatile portfolio inflows, describing them as vulnerable to global risk shocks. It emphasised the need for stronger export performance, increased foreign direct investment and improved domestic productivity as more sustainable sources of external stability.
The organisation further highlighted the growing importance of sub-national governments in driving economic transformation, noting that improved fiscal allocations have expanded their role in key development areas such as food production, primary healthcare, education and local infrastructure.
CPPE concluded that while macroeconomic stabilisation is necessary, it must be complemented by policies that ensure shared prosperity, deepen economic inclusion and deliver broad-based welfare improvements across the country.
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