Atiku’s subsidy pledge triggers warning over Nigeria’s economic gains

The Centre for the Promotion of Private Enterprises (CPPE) has warned that reversing Nigeria’s economic reforms could destabilise the foreign exchange market, weaken public finances and erode recovering investor confidence.

The warning comes amid a pledge by African Democratic Congress presidential candidate Atiku Abubakar to restore petrol subsidy if elected in 2027, arguing that Nigerians have not benefited adequately from the savings generated by its removal.

In a statement issued on Sunday, CPPE Chief Executive Officer Muda Yusuf said the reforms had produced measurable improvements in government revenue, external reserves, the trade balance, foreign exchange stability and investor sentiment.

The organisation also commended Finance Minister Taiwo Oyedele for providing greater clarity on the fiscal and macroeconomic effects of the reforms through the government’s economic scorecard.

Nigeria’s economy grew by 3.89 per cent in the first quarter of 2026, compared with 3.13 per cent in the corresponding period of 2025. CPPE, however, cautioned that improved macroeconomic indicators would have little meaning unless they translated into jobs, higher incomes and better living conditions.

“The next phase must move decisively from stabilisation to productivity; from higher government revenues to better development outcomes; and from improving macroeconomic indicators to tangible gains in jobs, incomes and living standards,” the organisation said.

CPPE warned that reversing the reforms could reintroduce the distortions they were intended to eliminate and trigger serious economic dislocation. It instead called for sustained implementation, accompanied by adjustments to address emerging challenges and reduce the burden on households and businesses.

The organisation identified unreliable electricity, insecurity, poor logistics, low agricultural productivity, inadequate infrastructure, regulatory expenses and high borrowing costs as major barriers to productive growth.

It noted that the electricity sector contracted by 15.3 per cent in the first quarter of 2026, despite manufacturing and agriculture growing by 3.29 per cent and 3.15 per cent respectively.

CPPE also urged state governments, which have received substantially higher revenues since the reforms began, to demonstrate the benefits through improved roads, healthcare, education, public transportation, security, electricity and support for enterprises.

The group further called for stronger coordination between fiscal and monetary authorities to create room for a gradual reduction in interest rates as inflation moderates, without undermining economic stability.

SOURCE: NEWSSCROLL