The Centre for the Promotion of Private Enterprise (CPPE) has called on the federal government to strengthen social protection programs to shield vulnerable Nigerians from the harsh effects of ongoing economic reforms, even as the economy begins to show early signs of stability.
In a policy commentary on Nigeria’s economic trajectory at 65, CPPE Chief Executive Officer, Dr. Muda Yusuf, acknowledged that the government had implemented far-reaching reforms in the last two years — including exchange rate unification, fuel subsidy removal, and tax policy adjustments.
According to the statement, CPPE said, “These measures have imposed short-term pain — high inflation and reduced household purchasing power — but early signs of macroeconomic stabilization are emerging.”
He emphasized, however, that reform efforts must be accompanied by deliberate policies to support ordinary citizens.
“To sustain reform momentum, these measures must be complemented by targeted social protection programs, cash transfers, food security interventions, and job-creation initiatives, to shield vulnerable households and maintain public support,” Yusuf said.
Nigeria at 65: Missed opportunities and untapped potentials
Reflecting on the nation’s economic journey, Yusuf described Nigeria’s history at 65 as one of resilience but also of missed opportunities and untapped potential.
“The current reform agenda presents a rare opportunity to reset the economy on a path of stability, competitiveness, and shared prosperity. Seizing this moment will require consistent policies, institutional strengthening, and a deliberate effort to ensure that economic growth translates into improved living standards for citizens,” Yusuf noted.
Yusuf warned that persistent macroeconomic instability continues to undermine growth.
“The naira’s dramatic depreciation, from being stronger than the U.S. dollar in the 1970s to N1,600/$ in 2024, has eroded purchasing power, raised production costs, and discouraged investment. Rising public debt and unsustainable debt-service-to-revenue ratios have constrained the fiscal space, limiting governments’ capacity to fund critical infrastructures,” Yusuf stated.
To overcome these challenges, CPPE recommended policy priorities focused on restoring currency stability through credible monetary policies, expanding the supply of foreign exchange by boosting non-oil exports, improving efficiency in public spending, plugging fiscal leakages, and raising non-oil revenue without stifling private enterprise.
“The good news is that the economy is beginning to experience a remarkable degree of stability over the last year,” the statement said.
What you should know
The federal government has said it is targeting 16 million poor and vulnerable Nigerians with social protection services.
In March, the European Union (EU) committed €46 million to support Nigeria’s social protection system under a new program titled “Sustainable Social Protection System in Nigeria.”
In July, Nairametrics reported that the International Monetary Fund (IMF) expressed concern over Nigeria’s lack of an adequate social safety net to shield vulnerable citizens.
The National Bureau of Statistics (NBS) reported that Nigeria’s Gross Domestic Product (GDP) grew by 4.23% year-on-year in real terms in the second quarter of 2025.