CPPE Projects Improved Economic Conditions for 2025

The Centre for the Promotion of Private Enterprises (CPPE) has expressed optimism about the country’s inflation outlook for 2025.

Dr Muda Yusuf, the Chief Executive Officer of CPPE, shared this perspective while responding to the December inflation figure released by the National Bureau of Statistics (NBS) on Wednesday, which stood at 34.80 percent. Dr. Yusuf highlighted the potential for improved economic conditions in the coming year.

The increase in the December headline inflation was marginal at 0.20 percent compared with November inflation figures of 34.60 percent.

The hike was primarily driven by the increased demand for goods and services to celebrate the festive season.

Yusuf, however, hinged his projected positive inflation metrics on sustained moderation in exchange rate volatility and improvement in foreign reserves.

He added that the prospects of easing geopolitical tensions with the inception of Donald Trump’s presidency in a few days would positively impact the inflation rate.

He, however, urged the Central Bank of Nigeria to pause on monetary policy tightening and interest rate hikes to ensure further moderation in inflammatory pressures.

This, Yusuf said, would reduce business operating costs.

He also advocated a reduction in fiscal risks to macroeconomic stability through a reduction in fiscal deficit and deceleration in public debt growth.

“Inflationary pressures continue to be a troubling feature of the Nigerian economy as reflected in the December inflation numbers.

“CPPE is worried about the current fixation of the National Assembly on revenue, especially the arbitrary revenue targets for Ministries, Departments and Agencies (MDAs).

“Excessive pressure on MDAs to boost revenue and increase internally generated revenue has profound inflationary implications,” he said.

Yusuf noted that in reality, such pressures were invariably transmitted to investors in the form of higher fees, levies, penalties, import duties and regulatory charges, among others.

These outcomes, he said, conflicted with government aspirations to boost investment, curb inflation and create jobs.

He noted that revenue targets should be based on empirical studies, the absorptive capacity of the economy and due consideration of the wider economic implications.

“Obsession with revenue would hurt investments, worsen inflationary pressures, aggravate poverty and impede economic growth.

“There should be a careful balance act between revenue growth aspirations, desire to boost investment and commitment to moderate inflation,” he said.

NAN