CPPE: Nigeria's Economic Gains Not Improving Welfare

The Centre for the Promotion of Private Enterprise (CPPE), led by Chief Executive Officer Dr. Muda Yusuf, issued a statement on Sunday regarding Nigeria's economic reforms. Yusuf acknowledged the measurable gains from these reforms, including strengthened government revenues, a stable foreign-exchange market, improved external reserves, an expanded trade surplus, and recovered investor confidence.

Real GDP growth increased to 3.89 percent in Q1 2026 from 3.13 percent in Q1 2025. However, Yusuf cautioned that macroeconomic stability should not be seen as an end goal.

He highlighted ongoing challenges such as high energy, financing, logistics, and regulatory costs that pressure purchasing power and hinder household welfare. Yusuf identified structural constraints like electricity, logistics, insecurity, and agricultural productivity as critical issues.

He noted a 15.3 percent contraction in the electricity sector in Q1 2026. He called for a trade policy to enhance domestic production and suggested that high-interest rates remain a challenge for businesses, advocating for stronger fiscal-monetary coordination to ease financing costs.