‘How presidential pardons undermine economy’

The Centre for the Promotion of Private Enterprise (CPPE) yesterday stated that extending clemency and pardon to persons convicted of corruption, financial fraud, illegal mining, murder, and drug-related crimes has far-reaching economic and social consequences. Director/Chief Executive Officer of the Centre, Dr. Muda Yusuf stated that illegal mining undermines legitimate enterprise, depletes national revenue, and […]

The Centre for the Promotion of Private Enterprise (CPPE) yesterday stated that extending clemency and pardon to persons convicted of corruption, financial fraud, illegal mining, murder, and drug-related crimes has far-reaching economic and social consequences.

Director/Chief Executive Officer of the Centre, Dr. Muda Yusuf stated that illegal mining undermines legitimate enterprise, depletes national revenue, and fuels insecurity in mining communities.

He also stated that corruption and financial crimes distort markets, weaken institutions, and discourage fair competition, adding that drug trafficking and related offences “tarnish Nigeria’s global image, exacerbate insecurity, and impose grave social costs.”

Yusuf spoke against the backdrop of the recent outcry that has trailed the recent presidential pardon of some convicted Nigerians. People have expressed concerns over the inclusion of people convicted of financial and economic crimes, especially illegal miners, on the list.

In a policy brief, Yusuf, a foremost economist said, “At a time when Nigeria is striving to diversify its economy, attract investment, and restore global confidence, such acts of liberal clemency risk sending disturbing and counterproductive signals.”

The CPPE however commended the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, for clarifying that the recently published list of beneficiaries of the presidential prerogative of mercy was not final.

He said, “The public outcry that greeted the initial announcement of the clemency and pardons was deep and legitimate.

“The inclusion of persons convicted of corruption, financial crimes, murder, drug trafficking, and illegal mining raised profound concerns about governance credibility, institutional integrity, and investor confidence.

“While the prerogative of mercy is a legitimate constitutional instrument, its application to serious economic and financial offences and other criminal acts demands utmost discretion, transparency, and alignment with Nigeria’s commitments to anti-corruption, drug control and the sanctity of human life.”

According to him, leniency toward financial and economic crimes erodes deterrence, weakens enforcement, and signals tolerance for misconduct.

“A soft sanction regime undermines respect for law and governance credibility,” he said.

He noted that investor confidence thrives on predictability, fairness, and justice.

“When those convicted of economic or financial crimes are pardoned, it raises questions about policy consistency, contract sanctity, and investment security, thereby discouraging both domestic and foreign investors.

“Undue clemency could reverse gains in governance credibility and reinforce perceptions of institutional weakness. Such perceptions affect sovereign risk ratings, capital inflows, and the attractiveness of Nigeria’s investment climate,” Yusuf added.

“Granting mercy to economic offenders can demoralize law enforcement agencies. Years of diligent investigation and prosecution risk being undermined, weakening institutional resolve and emboldening impunity.  The CPPE particularly acknowledges, in this regard, the incredible achievements of the National Drug Law Enforcement Agency (NDLEA), which have earned global recognition.

“A lenient sanction environment fosters impunity, weakens ethical standards, and erodes public trust in justice institutions. Over time, it discourages productivity, nurtures rent-seeking, and sustains unproductive and illicit economic behaviour.

“Sustained economic growth and inclusive prosperity depend on credibility, accountability, and fairness in governance.”

The centre called on the government to urgently review and rationalize the list of beneficiaries of the prerogative of mercy and reaffirm Nigeria’s zero-tolerance position on corruption, drug trafficking, illegal mining, and financial crimes.

“Nigeria’s aspiration to build a competitive, diversified, and globally respected economy rests on the credibility of its institutions and integrity of its governance. The perception of weak sanction regimes toward economic and financial crimes is incompatible with this goal.

“To preserve investor confidence and social stability, government must demonstrate unwavering commitment to accountability, effective consequence management and the rule of law. The credibility of Nigeria’s economic reform and investment promotion drive depends largely on it,” the statement added.