The Centre for the Promotion of Private Enterprise (CPPE) has cautioned that corruption, fund diversion, and political interference could undermine the effectiveness of the Federal Government’s newly launched social intervention programmes if robust safeguards are not put in place.
In a policy brief titled “Strengthening the Legitimacy of Economic Reforms” released on July 20, 2026, the economic think tank said the success of the World Bank-backed initiatives will depend not only on their design but also on transparent and accountable implementation.
While commending the programmes as an important step towards cushioning the impact of economic reforms on vulnerable Nigerians, CPPE stressed that execution remains the biggest risk.
What they are saying
CPPE Chief Executive Officer, Dr. Muda Yusuf, warned that social intervention programmes in Nigeria have historically faced challenges relating to corruption, inefficiency, and weak targeting.
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According to the think tank, strict measures must be implemented to prevent financial leakages, diversion of resources, and bureaucratic waste.
The organisation also urged the government to ensure that beneficiary selection is insulated from political influence so that support reaches those most in need.
- “The effectiveness of the initiative will depend on implementation. Programme design must reflect Nigeria’s institutional realities, minimise leakages and political capture, and ensure that support reaches intended beneficiaries efficiently, transparently and at scale. International development models should be adapted to local conditions rather than replicated without contextualisation.”
The group cautioned that failure to address governance risks could dilute the impact of the interventions and weaken public confidence in the broader reform agenda.
More insights
Despite its concerns, the CPPE described the new social intervention framework as a significant shift in government policy, moving beyond macroeconomic stabilisation toward improving welfare outcomes and promoting inclusive growth.
The five programmes introduced by the Federal Government include:
- Nigeria Community Action for Resilience and Economic Stimulus Additional Financing (NG-CARES AF)
- Solutions for Internally Displaced Persons and Host Communities Programme (SOLID)
- Human Capital Opportunities for Prosperity and Equity Governance Programme (HOPE-GOV)
- Human Capital Opportunities for Prosperity and Equity – Primary Health Care (HOPE-PHC)
- Human Capital Opportunities for Prosperity and Equity – Education (HOPE-EDU)
According to the CPPE, the programmes demonstrate a recognition that economic reforms must deliver tangible benefits to citizens if they are to remain politically and socially sustainable.
- “They signal an important shift in the reform agenda, from restoring macroeconomic stability to ensuring that the benefits of reform translate into improved welfare, greater inclusion and shared prosperity,” the policy brief noted.
Economic reforms need visible benefits
Yusuf acknowledged improvements in several macroeconomic indicators, including exchange-rate stability, stronger foreign reserves, improved fiscal transparency, and growing investor confidence.
However, he argued that macroeconomic gains alone are insufficient to judge the success of reforms.
- “The enduring test of any reform programme is its ability to improve living standards through lower inflationary pressures, higher productivity, stronger employment, and rising household incomes,” Yusuf said.
- “Macroeconomic stability is a means to an end, not an end in itself.”
The CPPE noted that social protection programmes can help build public trust in government reforms by ensuring that vulnerable groups are not left behind during periods of economic adjustment.
Structural reforms still essential
While supporting the new safety nets, the think tank warned against viewing social interventions as a substitute for deeper structural reforms.
According to Yusuf, long-term poverty reduction will require sustained efforts to address insecurity, food inflation, low agricultural productivity, inadequate infrastructure, and high business operating costs.
The CPPE argued that social protection measures should work alongside reforms aimed at improving the business environment, attracting investment, and creating jobs.
What you should know
The warning comes as 20 Nigerian states are set to receive a combined $27 million in performance-based grants under the World Bank-supported Human Capital Opportunities for Prosperity and Equity (HOPE) Governance Programme after meeting reform targets in education, healthcare, and public financial management.
The announcement was made by the National Coordinator of the programme, Dr. Assad Hassan, during a retreat for Commissioners, Permanent Secretaries, and Directors of Budget and Planning in Abuja.
The HOPE Governance Programme is a $500 million World Bank-backed initiative housed within the Federal Ministry of Budget and Economic Planning and is aimed at strengthening human capital outcomes and governance across participating states.
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