The Centre for the Promotion of Private Enterprise has urged the Federal Government to prioritise structural reforms that lower the cost of doing business, warning that recent gains in macroeconomic stability must translate into higher productivity, increased investment, job creation and improved living standards for Nigerians.
In its half-year review and second-half economic outlook released on Sunday, the Chief Executive Officer of the organisation, Dr. Muda Yusuf, said improvements in exchange-rate stability, moderating inflation, stronger external reserves, increased crude oil production and resilient financial markets have significantly reduced macroeconomic vulnerabilities and boosted investor confidence.
According to the report, the first half of 2026 recorded continued progress in macroeconomic stabilisation, with positive economic growth, a more stable foreign exchange market, stronger government revenues from oil and non-oil sources, and improved confidence in the financial system.
However, the CPPE noted that businesses continued to struggle with high production costs driven by elevated interest rates, expensive energy, inadequate electricity supply, poor transport infrastructure and logistics challenges.
It added that manufacturers, farmers and micro, small and medium-sized enterprises (MSMEs) remained under pressure despite improvements in the broader economy, while insecurity continued to disrupt agricultural production, supply chains and investment across several sectors.
The report also pointed to slow implementation of capital projects, attributing it to procurement delays, funding constraints and debt-service obligations, which it said limited the impact of government spending on economic growth.
Looking ahead, the organisation expressed cautious optimism that economic growth would remain positive in the second half of the year, supported by financial services, telecommunications, construction, trade, oil refining and other service-sector activities.
The CPPE projected that inflation would remain significantly lower than the levels recorded in 2025, although food supply disruptions, rising energy costs and fluctuations in global commodity prices remain key risks.
It also expressed confidence that exchange-rate stability would be sustained through stronger foreign exchange inflows, healthier external reserves and improved market confidence, while financial markets are expected to remain resilient on the back of banking sector recapitalisation, stronger corporate earnings and improved regulatory oversight.
The report, however, warned that increasing political activities ahead of the 2027 general elections could pose risks to macroeconomic stability.
According to the CPPE, election-related spending may increase liquidity in the economy, potentially fuelling inflation and raising demand for foreign exchange. It also cautioned that heightened political activity could distract policymakers from implementing critical fiscal and structural reforms.
The organisation urged the government to shift the next phase of reforms towards improving Nigeria’s competitiveness by reducing production costs and boosting productivity.
It recommended prioritising improvements in electricity supply, transport infrastructure, logistics efficiency and port operations, while strengthening security in farming communities and along transport corridors.
The CPPE also called for expanded access to affordable long-term financing for productive sectors, faster implementation of capital budgets, improved infrastructure delivery and policies that promote domestic value addition.
The organisation further advised the government to focus on efficiency-enhancing revenue reforms rather than imposing additional tax burdens and stressed the need for policy consistency despite growing political activities.
The report concluded that while Nigeria’s improved macroeconomic stability represents a significant achievement, the true measure of success will be the extent to which the reforms translate into stronger business competitiveness, increased private investment, job creation and improved living standards for Nigerians.
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