By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to shift the focus of economic reforms from macroeconomic stabilisation to creating jobs, attracting private investment and reducing the cost of doing business, saying this is critical to sustaining Nigeria’s economic recovery.
The call comes as Nigeria enters the second half of 2026 with what the CPPE described as its strongest macroeconomic fundamentals in several years, following improvements in exchange-rate stability, inflation, external reserves, crude oil production and investor confidence.
In its Half-Year Economic Review and Outlook for H2 2026, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, said while government policies have succeeded in reducing macroeconomic vulnerabilities, the gains have yet to translate into meaningful improvements in business competitiveness, employment and household welfare.
“The more fundamental challenge is to ensure that these gains are reflected in stronger business competitiveness, higher private investment, faster job creation and improved living standards,” Yusuf said.
According to the report, businesses across the country continue to grapple with high production costs driven by inadequate electricity supply, elevated energy prices, poor transport infrastructure, logistics bottlenecks and high interest rates, despite the improving macroeconomic environment.
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Dr. Yusuf noted that the next phase of economic reforms should focus on lowering production costs, improving productivity and strengthening the competitiveness of Nigerian enterprises.
He identified improved electricity supply, efficient transport and logistics systems, enhanced port operations and stronger security in farming communities and transport corridors as critical measures needed to unlock private sector growth.
He also called for expanded access to affordable long-term financing for productive sectors, accelerated budget implementation and improved infrastructure delivery to stimulate investment and economic activity.
Reviewing the first half of 2026, the report said Nigeria recorded steady economic growth, a more stable foreign exchange market, stronger external reserves, improved crude oil production and increased government revenues supported by better oil receipts and stronger non-oil tax collections.
Financial markets also remained resilient, reflecting growing investor confidence and improved policy credibility.
However, the report observed that sectors such as manufacturing, agriculture and micro, small and medium enterprises (MSMEs) continued to face significant structural challenges that limited productivity and competitiveness.
According to CPPE, insecurity remained a major obstacle to agricultural production and investment, while procurement delays, funding constraints and rising debt-service obligations slowed capital project implementation and weakened the impact of fiscal policy.
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.
It also projected that inflation would remain significantly below the exceptionally high levels recorded in 2025, while exchange-rate stability would be sustained by stronger foreign exchange inflows, healthier reserves and improved market confidence.
Despite the positive outlook, the CPPE warned that increasing political activities ahead of the 2027 general elections could pose risks to economic management.
The report cautioned that election-related spending may increase liquidity in the economy, potentially fuelling inflationary pressures and foreign exchange demand, while heightened political activities could distract policymakers from implementing critical fiscal and structural reforms.
To sustain the country’s economic recovery, the CPPE advised the government to prioritise efficiency-driven revenue reforms instead of imposing additional tax burdens and maintain policy consistency throughout the election cycle.
Yusuf stressed that the quality of economic management during the remainder of 2026 would ultimately be measured by the government’s ability to reduce the cost of doing business, improve productivity and ensure that macroeconomic stability delivers tangible benefits to businesses and ordinary Nigerians.
He added that sustained reform momentum, stronger implementation capacity and consistent policy execution would be essential to transforming Nigeria’s improving macroeconomic fundamentals into broad-based, inclusive and long-term economic growth.
