Muda Yusuf says stronger growth must translate into better incomes, productive jobs and lower business costs…..
Nigeria’s recent economic reforms have helped improve several key indicators, but the country must now focus on raising productivity and ensuring that the gains are felt by households and businesses, the Centre for the Promotion of Private Enterprise has said.
The organisation’s Chief Executive Officer, Muda Yusuf, made the assessment as Nigeria prepares to mark its 66th independence anniversary, arguing that the country’s economic transformation remained incomplete despite significant changes in the structure of the economy.
Yusuf said Nigeria had moved from an economy largely driven by agriculture to one with major activity in petroleum, telecommunications, banking, construction, trade, entertainment and digital services.
He also pointed to large-scale investments in cement, fertiliser and refining as evidence that Nigerian businesses could achieve production at scale when the right conditions existed.
But he said the country had diversified its production more than its exports, while productivity remained constrained by weak infrastructure, high operating costs and low returns across large parts of the economy.
The challenge, according to Yusuf, is no longer simply whether Nigeria can grow, but whether it can produce more value per worker and translate that into higher real incomes.
Reforms have delivered some gains
Yusuf acknowledged that Nigeria had recorded important successes from previous economic reforms, citing the liberalisation of the telecommunications sector and reforms in banking and payments.
He said those changes demonstrated how policy reforms could open markets, attract private investment and create new opportunities for businesses and consumers.
However, he said the economy had also been weakened over the years by its dependence on oil revenues, inconsistent policies and inadequate investment in infrastructure.
Oil price fluctuations, he noted, had repeatedly affected government finances and foreign exchange availability, while recessions, the COVID-19 pandemic, insecurity and global food and energy shocks had exposed the vulnerability of the economy.
For Yusuf, Nigeria’s large population and natural resources could provide opportunities for growth, but would not by themselves deliver higher productivity without reliable infrastructure, effective institutions and sound policy implementation.
He said recent measures by the Bola Tinubu administration, including the removal of the petrol subsidy, exchange-rate reforms and revenue measures, had addressed some longstanding fiscal and foreign exchange distortions.
There have been improvements in several economic indicators.
Real GDP growth increased from 3.38 per cent in 2024 to 3.87 per cent in 2025 and reached 4.43 per cent year-on-year in the second quarter of 2026.
Headline inflation stood at 15.39 per cent in August, while the Central Bank of Nigeria reduced its benchmark Monetary Policy Rate to 23 per cent in September.
Yusuf also pointed to improvements in government revenues, foreign reserves and exchange-rate stability.
But he said the improvement in macroeconomic indicators had yet to translate sufficiently into relief for Nigerians.
Cost of living remains a concern
Although inflation has slowed, Yusuf said prices remain substantially higher than they were previously, leaving households with reduced purchasing power.
The increases in petrol prices and the adjustment of the exchange rate, combined with global food and energy shocks, have raised the cost of essentials including food, transportation and electricity.
Businesses are facing similar pressures through higher input, distribution and financing costs.
Yusuf said the next phase of economic policy should therefore focus on tackling the structural problems that limit productivity.
“A farmer needs security, irrigation, storage and access roads to increase output,” he said.
“A manufacturer needs reliable electricity, efficient ports and predictable regulation to compete. A small business needs affordable working capital and customers with spending power.”
He argued that without improvements in these areas, economic growth would continue to have a limited effect on employment and real incomes.
CPPE calls for focus on production
The organisation called for greater attention to electricity supply, security along farming and commercial corridors, ports and logistics, agricultural yields, industrial competitiveness and skills development.
Yusuf said government support for businesses should increasingly be linked to investment, efficiency and export performance.
The aim, he said, should be to lower the cost of producing in Nigeria and increase the supply of goods and services that consumers can afford.
He also stressed that responsibility for delivering economic improvements did not rest solely with the Federal Government.
According to him, state governments have important roles to play in areas such as land administration, roads, investment approvals, education and healthcare, while local governments should improve basic services, maintain community infrastructure and eliminate arbitrary levies that increase the burden on small businesses.
He said the three tiers of government needed to work towards measurable outcomes, including lower transport and production costs, higher agricultural yields, improved public services and more productive employment.
More revenue must produce visible results
Yusuf said increased government revenue would have limited impact if public services remained weak.
He pointed to schools without adequate teachers, health facilities lacking personnel and businesses being forced to provide their own electricity and water as examples of the gaps that continue to undermine productivity.
He called for clearer spending priorities and greater public accountability so that citizens could identify how additional public resources were being used and what improvements resulted.
As Nigeria turns 66, Yusuf said the country had the entrepreneurial capacity and resources to achieve stronger economic performance.
The priority, he argued, should now be to convert the gains from economic reforms into sustained productivity growth and ensure that higher productivity eventually translates into improved living standards.
