The Centre for the Promotion of Private Enterprise (CPPE) has reiterated the importance of taking urgent measures to mitigate the rising cost of living and escalating operating and production costs for businesses. In its half-year review, the CPPE acknowledged the commendable efforts of the Tinubu administration in steering the economy towards a positive trajectory, which bodes well for recovery and growth.
The CPPE highlighted several positive indicators, including increased investor confidence, improvements in the government’s fiscal position, a more stable exchange rate in the near future, and optimistic expectations for enhanced economic governance. It also emphasized the favorable short to medium-term outlook for forex liquidity, with bright prospects for increased capital inflows.
However, the CPPE’s Director, Dr. Muda Yusuf, underscored the urgent need to address the social consequences of recent reforms, particularly the inflationary pressures resulting from the removal of fuel subsidies. Yusuf cautioned that these inflationary pressures might intensify in the near term, potentially exerting pressure on the exchange rate through the backlog of forex demand in the official forex window.
Yusuf further noted that while the short-term outlook may involve some exchange rate pressure, it is expected to ease before the end of the year. The CPPE emphasized the importance of swift actions to alleviate the impact of these challenges on businesses and the general population.
The Centre for the Promotion of Private Enterprise calls for proactive measures to mitigate the rising cost of living, including efforts to address inflationary pressures and ensure stability in the foreign exchange market. By implementing policies that promote economic resilience and providing support for businesses, the government can alleviate the burden on the public and facilitate sustainable economic growth.
It is crucial for the government to maintain a focus on balancing economic reforms with social considerations, ensuring that the benefits of these reforms reach all segments of society. By adopting a comprehensive approach to address the challenges faced by businesses and individuals, Nigeria can foster an environment conducive to growth and prosperity.
