Get Guardian on GoogleCHIEF Executive Officer (CEO), Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, has warned that rising political violence, intimidation and inflammatory rhetoric ahead of the 2027 general elections could undermine investor confidence, trigger capital flight and worsen Nigeria’s economic vulnerabilities.
He also lamented that the politicisation of state institutions, especially the Independent National Electoral Commission (INEC), security agencies and the judiciary, could weaken the rule of law, increase business uncertainty and threaten the country’s investment outlook.
In a policy brief titled, Political Violence and Institutional Neutrality: Safeguarding Investor Confidence Ahead of the 2027 Elections, made available to The Guardian yesterday, he urged political leaders, parties and state institutions to exercise restraint, uphold due process and protect the stability of the business environment.
Yusuf said political competition is a legitimate feature of democracy but warned that when it degenerates into violence, institutional manipulation and disregard for the rule of law, the consequences go beyond politics to investment decisions, business operations, employment and economic growth.
He said Nigeria cannot afford an electoral process that compounds existing economic vulnerabilities.
According to him, political violence constitutes a significant economic risk, capable of discouraging investments, delaying business expansion plans and increasing investor risk premiums. He identified business disruptions, capital flight, FX volatility and rising operating costs among the possible consequences of prolonged political instability.
He further noted that political clashes, insecurity and violent protests can disrupt commercial activities, supply chains, logistics and market access, while businesses might be forced to spend more on security, insurance, transportation and contingency arrangements.
He added that persistent political violence can further damage Nigeria’s reputation as an investment destination, particularly affecting small businesses, informal enterprises and investors with significant fixed assets that cannot easily be relocated.
He called on security agencies to act proactively, impartially and decisively to prevent violence and ensure that perpetrators and sponsors are held accountable.
He stressed that political violence must be condemned irrespective of its perpetrators or beneficiaries, insisting that electoral ambition must not take precedence over the security of lives, property and investments.
On institutional neutrality, he stressed that the independence and operational effectiveness of critical state institutions are essential to a peaceful political transition and a stable investment climate and urged INEC to operate independently, transparently and professionally, without political interference or intimidation. He also urged security agencies to provide impartial protection for political actors, electoral officials, citizens and economic assets.
The judiciary, he stressed also, must remain independent and accessible to ensure credible, timely and lawful resolution of electoral disputes. He also warned against the weaponisation of regulatory and law enforcement institutions for political intimidation, selective sanctions or partisan advantage.
According to him, the politicisation of public institutions weakens the rule of law, undermines regulatory predictability, increases perceptions of arbitrary government action and erodes confidence in the protection of investments and contractual rights.
He maintained that institutional neutrality is not merely a democratic obligation but a fundamental requirement for investment security and economic competitiveness. To prevent a deterioration of the political and economic environment, he outlined five priority actions for political leaders and state institutions; including zero tolerance for political violence, protection of institutional independence, responsible political communication, safeguarding economic activities and preserving policy and administrative stability.
He urged political parties and their leaders to publicly reject violence, restrain their supporters and cooperate with lawful investigations and prosecution of offenders.
Warning politicians to refrain from interfering with INEC, security agencies, the judiciary and other institutions central to the electoral process; he called for an end to inflammatory political rhetoric, threats and actions capable of provoking social unrest or undermining public confidence.
On economic security, he urged authorities to prioritise the protection of commercial centres, industrial facilities, transport corridors, markets and critical infrastructure throughout the electoral period and cautioned that politics should not disrupt economic governance, undermine regulatory institutions or compromise existing lawful contractual and investment commitments.
He further noted that the conduct of political actors and the integrity of state institutions during the 2027 electoral cycle would be important determinants of Nigeria’s political risk profile and investment outlook.
He warned that while a peaceful electoral environment, credible institutions and respect for the rule of law would help sustain investor confidence and protect business continuity, escalating violence, institutional partisanship and electoral uncertainty could weaken investment appetite, raise the cost of doing business and undermine economic recovery.
He urged politicians to place national economic stability above partisan interests, stressing that Nigeria’s democracy must be strengthened through credible institutions and peaceful political competition rather than violence and institutional partisanship.
