By Omodele Adigun
The Centre for the Promotion of Private Enterprise (CPPE) has warned that Nigeria’s economy remains vulnerable to structural weaknesses, fiscal fragilities, and overdependence on oil revenues.
As the country marks its 65th year of independence, CPPE Director and CEO Dr. Muda Yusuf, in a commentary released on Monday, emphasised the need for decisive diversification, credible stabilisation mechanisms, and fiscal discipline.
According to Yusuf, Nigeria’s economy has been marked by cycles of boom and bust since independence, with the oil boom of the 1970s distorting fiscal structures and weakening domestic productivity.
“The discovery of oil radically altered Nigeria’s economic and political trajectory. By the 1970s, oil had become the dominant source of public revenue and foreign exchange, leading to neglect of agriculture and dependence on imported food,” Yusuf noted.
He added that, “The neglect of agriculture, coupled with rising import dependence and rent-seeking behavior, created vulnerabilities that persist today.”
Yusuf observed that lessons from the past show that reforms must be carefully sequenced and accompanied by social protection to shield citizens from economic shocks.
He stressed, “Building resilience requires decisive diversification, credible stabilisation mechanisms, and fiscal discipline. Failure to act will keep the economy trapped in cycles of volatility.”
He emphasised the need for Nigeria to diversify its economy, improve public spending efficiency, and raise non-oil revenue without stifling enterprise.
Despite challenges, CPPE highlighted successes in the ICT and telecommunications sector, financial services, fintech, and Nigeria’s cultural industries (Nollywood and Afrobeats). These sectors demonstrate the potential for non-oil-led growth if supported by infrastructure, power supply, broadband expansion, and consistent policies.
“The ICT and telecommunications revolution has transformed commerce, governance, and banking,” Yusuf observed, adding that “Nigeria’s cultural industries, Nollywood and Afrobeats, have gained global recognition, showing the potential of non-oil-led growth.”
The report equally underscored the impact of insecurity on economic productivity. Insurgency, banditry, kidnappings, and herder-farmer conflicts over the past two decades have crippled agriculture, manufacturing, and mining while discouraging investment.
Yusuf said restoring security must be treated not only as a social imperative but also as an economic priority to rebuild investor confidence. He emphasised the need for the government to implement social protection measures such as cash transfers, food security programs, and job creation initiatives.
According to him, “Macroeconomic instability remains a pressing concern. The naira’s dramatic depreciation and rising debt levels have eroded purchasing power and raised production costs.”
Yusuf urged the government to restore currency stability through credible monetary policy and expand foreign exchange supply by boosting non-oil exports.
“Nigeria must restore currency stability through credible monetary policy, expand foreign exchange supply by growing non-oil exports, and raise non-oil revenues without stifling enterprise.
“The current reform agenda, including fuel subsidy removal, exchange rate unification, and tax policy changes, has imposed short-term pain but shows early signs of macroeconomic stabilisation,” Yusuf added.
Yusuf acknowledged these bold steps toward stability but emphasized the need for consistency and institutional strengthening.
Looking to the future, CPPE emphasised the need for Nigeria to deepen diversification in agriculture, manufacturing, and solid minerals; strengthen governance and transparency; invest aggressively in infrastructure and human capital; and embed inclusivity in growth strategies to tackle poverty and unemployment.
Yusuf maintained that Nigeria’s population of over 230 million represents both a huge opportunity and a daunting challenge. Investing in education, healthcare, and vocational training is critical to harnessing its demographic dividend.
In conclusion, Yusuf reflected on Nigeria’s 65-year economic history, noting that it is one of resilience, missed opportunities, and vast untapped potential.
“The current reform agenda provides a rare opportunity to reset the economy on a path of stability, competitiveness, and shared prosperity,” he said.
“Nigeria’s 65-year economic history is one of resilience, missed opportunities, and vast untapped potential.
“The current reform agenda provides a rare opportunity to reset the economy on a path of stability, competitiveness, and shared prosperity. Consistency, institutional strengthening, and a deliberate effort to ensure growth translate into better living standards for citizens are critical to achieving this goal,” the CPPE boss concluded.
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