The Centre for the Promotion of Private Enterprise (CPPE) has called for the restoration of fiscal federalism as a means of driving subnational competition, innovation, and inclusive growth.
The call was contained in a statement titled “CPPE Commentary on the Nigerian Economy at 65” and signed by its Chief Executive Officer, Dr. Muda Yusuf.
Yusuf noted that Nigeria’s current reform agenda presents a rare opportunity to reset the economy on a path of stability, competitiveness, and shared prosperity. He recalled that, at independence, the country’s economy was largely agrarian, productive, and inclusive, with regions controlling resources and revenues in a decentralised governance structure that promoted accountability and healthy competition.
“This early experience offers an enduring lesson: decentralisation and local ownership of resources drive innovation and inclusive growth. Restoring a more fiscally federal structure could once again foster subnational competitiveness and encourage states and regions to take greater ownership of economic outcomes,” Yusuf said.
He explained that the discovery of oil in the late 1960s altered Nigeria’s economic trajectory and made the nation vulnerable to oil price shocks, which have continued to destabilise public finances. Since independence, Nigeria has experienced eight recessions, largely triggered by oil volatility, fiscal mismanagement, or global crises.
According to him, resilience will depend on export diversification, fiscal discipline, and credible stabilisation mechanisms to ensure steady government spending during revenue fluctuations.
Yusuf welcomed recent developments such as the Dangote Refinery and ongoing industry reforms, which he said could enhance energy security and catalyse new investments. He, however, stressed that insecurity over the past two decades had disrupted agriculture, manufacturing, and mining, while eroding investor confidence.
“Restoring security is not just a social imperative but an economic one, necessary to rebuild productivity and unlock investment in the real economy,” he said.
He also highlighted achievements in ICT and telecommunications, which have transformed commerce, banking, and governance, and commended ongoing reforms for laying the groundwork for macroeconomic stability despite their short-term pain.
Yusuf urged government to complement reforms with targeted social protection programmes such as cash transfers, food interventions, and job-creation schemes to shield vulnerable households and sustain public support.
“Nigeria’s economic history at 65 is one of resilience, missed opportunities, and enormous untapped potential. Seizing this moment will require consistent policies, institutional strengthening, and deliberate efforts to ensure growth translates into improved living standards,” Yusuf said.
