TUE SEPT 29 2026-theGBJournal| As Nigeria celebrates 66 years of independence, the Centre for the Promotion of Private Enterprise (CPPE) says the country has undergone major economic transformation, but must now turn stabilisation and diversification into higher productivity, better-paying jobs and broader prosperity.
From an economy once dominated by agriculture, Nigeria has evolved into a more complex and diversified marketplace, with petroleum reshaping public finances and sectors such as telecommunications, banking, trade, construction, entertainment and digital services opening new opportunities for businesses and young people.
Major investments in cement, fertiliser and refining have further demonstrated the capacity of the economy to support large-scale domestic production, CPPE says.
But the centre argues that Nigeria’s transformation remains incomplete.
The country has diversified what it produces more than what it sells to the rest of the world, leaving exports heavily concentrated and the economy vulnerable to external shocks.
Productivity remains another major hurdle.
Many farms continue to record low yields, manufacturers contend with expensive power and logistics, while much of the workforce remains engaged in low-return activities.
For CPPE, the defining economic question after 66 years is no longer simply whether Nigeria is growing, but whether it can produce more value per worker and translate that growth into sustained increases in real incomes.
Reform has delivered — but unevenly
Nigeria’s economic history offers evidence that policy reform can unlock new markets and attract private investment.
The liberalisation of telecommunications transformed access to communication and created one of the country’s most dynamic private-sector industries. Banking and payments reforms similarly widened access to financial services and helped lay the foundations for a rapidly expanding digital economy.
These changes show what is possible when reforms create space for private investment and competition.
The challenge, CPPE says, is to replicate those gains across the wider economy — raising productivity, expanding exports, creating better-quality jobs and ensuring that economic growth reaches more households.
According to CPPE: Nigerian entrepreneurs have repeatedly shown that they can build competitive businesses when policy is credible and markets are open.
The country has also paid a high price for dependence on oil revenue, inconsistent policies and underinvestment in infrastructure. Oil price swings have repeatedly disrupted budgets and foreign exchange supply. Recessions, the pandemic, insecurity and global food and energy shocks exposed the economy’s vulnerabilities.
The lesson is clear: a large market and abundant resources create opportunities, but productivity depends on reliable institutions, infrastructure and sound policy formulation and execution.
The present administration’s petrol subsidy removal, exchange rate reforms and revenue measures addressed longstanding fiscal and foreign exchange distortions.
They were consequential decisions, and early macroeconomic results warrant recognition. Real GDP growth rose from 3.38% in 2024 to 3.87% in 2025, reaching 4.43% year on year in the second quarter of 2026.
Headline inflation stood at 15.39% in August 2026, and the Central Bank reset its policy rate to 23% in September. Revenues, reserves and exchange rate stability have also improved markedly.
These gains provide a stronger foundation, but they are yet to translate sufficiently into relief for households and firms.
The welfare and productivity challenge
Inflation has eased, but prices remain far above their earlier levels. The combined effects of petrol price increases, exchange rate adjustment and global food and energy shocks have reduced purchasing power.
Transport, food, electricity and other essentials take a larger share of household income. Businesses face the same pressures through higher input, distribution and financing costs.
This is why stabilisation must now give way to a determined productivity agenda. A farmer needs security, irrigation, storage and access roads to increase output. A manufacturer needs reliable electricity, efficient ports and predictable regulation to compete.
A small business needs affordable working capital and customers with spending power. Without progress on these structural constraints, growth will remain too weak in jobs and real incomes, regardless of improvements in headline indicators.
CPPE urges the government to prioritise power supply, security in farming and commercial corridors, ports and logistics, agricultural yields, industrial competitiveness and skills relevant to enterprise.
Public support for industry should be tied to investment, efficiency and export performance. The objective is to lower the cost of producing in Nigeria and expand the supply of goods and services that citizens can afford.
All tiers of government must deliver
The benefits of national reform will be realised largely where people live and businesses operate.
The Federal Government must sustain macroeconomic stability and deliver national security, power and transport priorities. State governments must improve land administration, roads, investment approvals, schools and healthcare.
Local governments must maintain community infrastructure, provide effective basic services and end arbitrary levies that burden small enterprises.
These responsibilities are connected. A federal highway cannot unlock agricultural production if state and local roads leave farms inaccessible.
More public revenue will have limited value if clinics lack staff, schools lack teachers and businesses still provide their own power and water. Greater resources across the federation must therefore come with clearer spending priorities and public accountability.
The three tiers of government should deliver measurable outcomes: lower transport and production costs, higher farm yields, more reliable services, stronger learning and health outcomes, and more productive jobs. Citizens should be able to see where additional public resources went and what improved as a result.
At 66, Nigeria has the enterprise and resources to achieve far more. The priority is to convert the gains from reform into higher productivity—and to ensure that higher productivity is felt in the living standards of Nigerians.
Dr Muda Yusuf is Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE)
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