The Centre for the Promotion of Private Enterprise (CPPE) has endorsed the International Monetary Fund’s (IMF) positive assessment of Nigeria’s economic reforms but urged policymakers to adopt a more balanced approach that prioritises economic growth, job creation and improved living standards.
In a statement issued on Sunday, CPPE Chief Executive Officer, Dr. Muda Yusuf, said the IMF’s Article IV Consultation Report correctly acknowledged the progress Nigeria has made in restoring macroeconomic stability through reforms implemented over the past three years.
According to Yusuf, the reforms have helped stabilise the foreign exchange market, improve external sector balances, boost investor confidence and restore policy credibility.
He noted that reduced exchange rate volatility, stronger foreign reserves, increased capital inflows and improved corporate performance are evidence of the gains achieved through the government’s stabilisation measures.
“After years of macroeconomic distortions, the economy is gradually moving from a regime of instability to one of greater predictability,” he said, describing the development as an important foundation for investment, productivity and sustainable growth.
Despite the improvements, CPPE agreed with the IMF’s concerns over the persistence of poverty and food insecurity, stressing that economic reforms should ultimately translate into better living conditions for Nigerians.
The organisation argued that macroeconomic indicators such as exchange rate stability, reserve accumulation and fiscal consolidation would only be meaningful if they result in lower food prices, higher incomes, job creation and improved welfare for citizens.
Yusuf said the next phase of economic management should focus on converting macroeconomic gains into broad-based prosperity, noting that the challenge facing policymakers has shifted from stabilisation to inclusive growth.
The CPPE, however, expressed reservations about the IMF’s continued support for tight monetary policies and high interest rates, warning that prolonged monetary tightening could undermine investment, business expansion and job creation.
It noted that lending rates in Nigeria remain among the highest globally, making access to credit increasingly difficult for businesses seeking to expand operations.
The group also warned that high yields on government securities are encouraging banks and investors to channel funds into treasury bills and bonds rather than financing productive sectors of the economy.
According to the organisation, sustainable economic development cannot be achieved when financial institutions earn higher returns from government debt instruments than from supporting enterprise, innovation and industrialisation.
The CPPE further defended the role of development finance in Nigeria’s economy, arguing that targeted financing interventions remain critical for sectors such as agriculture, manufacturing, housing and infrastructure.
Yusuf said development finance should not be viewed as a market distortion but rather as a necessary response to structural financing gaps and market failures. He noted that many strategic sectors require long-term capital that conventional commercial lending is often unable to provide.
The organisation also highlighted the growing burden of debt servicing, linking it to elevated domestic borrowing costs driven by high interest rates. It warned that increasing debt-service obligations are reducing fiscal space for investments in infrastructure, healthcare and education.
CPPE welcomed recent indications by the Minister of Finance that the Federal Government plans to refinance parts of its debt portfolio to reduce borrowing costs, describing the move as a step in the right direction.
On external financing, the organisation shared the IMF’s concerns about Nigeria’s increasing reliance on foreign portfolio investments. While acknowledging their role in supporting liquidity and exchange rate stability, CPPE cautioned that such inflows remain highly volatile and susceptible to global market shocks.
The group urged policymakers to focus on attracting foreign direct investment, boosting exports and enhancing productivity to build long-term economic resilience.
CPPE also questioned the effectiveness of conditional cash transfers as the centrepiece of Nigeria’s social protection strategy. It argued that while cash transfers may provide short-term relief, challenges related to beneficiary identification, transparency and governance limit their impact.
Instead, the organisation advocated increased investment in agriculture, transportation infrastructure, healthcare, education and water supply, saying such interventions would lower the cost of living and create sustainable economic opportunities.
“The most effective poverty reduction programme is one that reduces the cost of living and expands economic opportunities,” Yusuf stated.
The CPPE further criticised the IMF report for not giving sufficient attention to the role of state governments in driving economic reforms and development.
It noted that recent increases in federation revenue allocations have strengthened the fiscal capacity of states, making their spending decisions increasingly important to national economic outcomes.
According to the organisation, key development priorities such as food production, rural infrastructure, primary healthcare, basic education and local security fall largely within the responsibilities of sub-national governments.
Yusuf concluded that while macroeconomic stability is essential for rescuing an economy from crisis, shared prosperity remains critical to sustaining public support for reforms and ensuring long-term economic transformation.
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