Economist Decries High Cost Of Living Despite GDP Growth

The director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, emphasised the importance of tackling long-standing structural challenges in agriculture, manufacturing, and trade to achieve higher, more inclusive, and sustainable growth in Nigeria.

In a statement, Yusuf outlined the necessity for targeted policies aimed at alleviating cost-of-living pressures, insisting that these reforms must be inclusive to drive meaningful economic progress.

He observed that Nigeria’s economy’s performance in the third quarter underscored the positive effects of ongoing economic reforms, particularly in stabilising the exchange rate, controlling inflation, improving fiscal conditions, and gradually rebuilding investor confidence. These macroeconomic advancements have bolstered business sentiment and stimulated activities across key sectors.

While acknowledging the progress made, Yusuf highlighted, “the pressing concern of the cost-of-living crisis. Despite a trend towards disinflation and a decline in the prices of some food items and manufactured goods, the social implications of economic reforms are still impacting households.”

He stressed the need for policymakers to prioritise targeted interventions that address these challenges and ensure that GDP growth and macroeconomic stability translate into tangible improvements for citizens, especially for vulnerable communities.

To build on the gains seen in Q3 and foster stronger, more inclusive growth, Yusuf recommended focusing on reducing structural bottlenecks.

He advocated for enhancing agricultural productivity, rebuilding manufacturing competitiveness, improving housing affordability, increasing funding for social sectors, boosting non-oil export competitiveness, and stabilising oil output while securing critical infrastructure.

Yusuf pointed out that “Nigeria’s Q3 GDP performance reaffirms that the economy is on a steady recovery trajectory. Enabled by improved macroeconomic stability, stronger investor sentiment, and resilience in key sectors such as services, ICT, financial services, and construction, Nigeria is poised for positive economic developments.

“With a commitment to ongoing reforms, targeted investments, and enhanced governance, Nigeria can look forward to achieving stronger economic outcomes in the future.”