Centre Welcomes IMF Recognition Of Nigeria’s Reforms, Advocates Focus On Welfare

The Centre for the Promotion of Private Enterprise (CPPE) has positively received the International Monetary Fund’s (IMF) commendation of Nigeria’s economic reforms.

In its 2026 Article IV Consultation Report, the IMF highlighted the restoration of macroeconomic stability, which resonates with observations from the private sector.

The CEO of CPPE, Dr. Muda Yusuf emphasized the significant progress made over the past three years, noting improvements in the foreign exchange market, enhanced reserves, and increased investor confidence.

He believed that the next phase of economic policy should concentrate on converting macroeconomic achievements into tangible welfare improvements.

“This shift should prioritize lowering food prices, creating better job opportunities, and elevating living standards, beyond merely focusing on exchange rate stability and fiscal consolidation,” he said.

Yusuf noted, “these accomplishments mark a pivotal moment. After facing years of macroeconomic challenges, we are witnessing a transition towards a more predictable economic environment, which is essential for fostering investment, productivity, and sustained growth.”

While the CPPE acknowledged the IMF’s concerns about ongoing issues of poverty and food insecurity, it stresses that the effectiveness of economic reforms should ultimately be measured by their impact on the welfare of citizens.

“Stability in exchange rates, reserve accumulation, and fiscal responsibility are critical, but the real measure of success lies in how these reforms translate into lower food costs, improved job prospects, higher incomes, and an overall enhanced quality of life,” Yusuf added.

He pointed out the necessity for policymakers’ focus to shift from mere economic stabilization to promoting inclusive prosperity.

Although the IMF supports monetary tightening, CPPE highlighted the need for a balanced approach that considers the impact of high interest rates on investment, business growth, job creation, and sovereign debt pressures.

Yusuf cautioned, “current lending rates in Nigeria are reaching a point that poses challenges for productive investment, as they remain among the highest globally, hindering business expansion and job creation.”

He further explained that sustainable development cannot be achieved when financial capital is more attracted to government instruments than to fostering enterprise, innovation, and industrialization.

“The IMF may not fully recognize the vital role of targeted financing interventions in an economy like Nigeria’s,” he said.
“Development finance is not just a policy alternative; it is an essential component of economic strategy. If left solely to market forces, key sectors like agriculture, manufacturing, housing, and infrastructure risk chronic underfunding, which limits productivity and long-term economic growth,” he said.

Yusuf argued that Nigeria’s economic structure significantly differs from those of advanced economies, requiring long-term, patient capital for critical sectors, which traditional financing often fails to provide.

He asserted, “in an environment where commercial lending tends to be short-term, costly, and risk-averse, development finance becomes crucial for unlocking productivity, supporting investment, and driving inclusive growth.”

He highlighted that development finance should be viewed as a necessary solution rather than a disruption of the market. Historical evidence shows that economic transformation has consistently been supported by development finance institutions in both developed and emerging countries.

Addressing the IMF’s concerns about increasing reliance on foreign portfolio investments, Yusuf acknowledged their role in providing liquidity and supporting exchange rate stability.

However, he cautioned about their volatile nature and potential exposure to global risk shifts. “It is imperative to recognize the rollover risks mentioned by the IMF, especially given the current global uncertainties involving geopolitical tensions and economic fluctuations,” he said.

The CPPE CEO emphasized that a resilient external sector cannot depend solely on portfolio investments; it must be underpinned by stronger exports, higher productivity, increased foreign direct investment, and a more competitive domestic market.