NESG: Nigeria must turn reforms into real growth now

By: Amarachi Okonkwo 

The Nigerian Economic Summit Group has unveiled its Nigerian Private Sector Outlook 2026 report, with policymakers and business leaders urging decisive action to translate ongoing economic reforms into tangible growth, improved productivity, and stronger business performance.

The report was launched during a hybrid event that brought together key stakeholders from government, the private sector, and development institutions at a critical juncture in Nigeria’s economic transition.

Delivering the keynote address, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the moment as pivotal, noting that Nigeria is moving from a phase of reform implementation to consolidation and measurable outcomes.

According to him, the country has undertaken major policy reforms over the past year aimed at correcting structural imbalances, strengthening fiscal frameworks, improving macroeconomic stability, and restoring transparency. He pointed to emerging signs of progress, including a more unified exchange rate, improved fiscal performance, and clearer policy direction.

However, Oyedele cautioned that stabilisation alone does not equate to success.

“The real test now is moving from reform to growth,” he said, stressing that reforms must begin to deliver concrete outcomes such as increased investment inflows, job creation, higher productivity, and improved living standards.

Key Priorities for Growth

The minister outlined four critical priorities needed to unlock sustained growth:

Policy consistency and predictability to build investor confidence.

Reduction in cost of doing business, including tackling multiple taxation and logistics inefficiencies.

Improved access to capital through stronger financial markets and credit systems.

Enhanced productivity, driven by infrastructure, skills, and technology.

He emphasised that inconsistent policies and regulatory uncertainty remain major deterrents to investment, adding that businesses require clarity across tax systems, trade policies, and foreign exchange regulations.

On economic targets, Oyedele stated that Nigeria aims to achieve real GDP per capita growth of 4–5%, a benchmark considered necessary for meaningful poverty reduction and shared prosperity.

He also introduced the concept of a “public-policy private partnership,” stressing that sustainable growth requires alignment between government reforms, private sector investment, and development partner support.

AfDB Backs Reforms with $1bn Support

Also speaking, African Development Bank Group Nigeria Director-General Abdul Kamara commended the country’s reform trajectory, noting improvements in key macroeconomic indicators such as GDP growth, inflation trends, exchange rate stability, and non-oil revenue performance.

He disclosed that the AfDB has approved a $1 billion policy-based support programme for Nigeria, with $500 million already disbursed in 2024.

The funding supports reforms across:

Energy sector transformation.

Tax policy and administration.

Electricity market restructuring.

Renewable energy and clean cooking initiatives.

Gender inclusion in energy access.

Kamara also praised efforts to streamline tax collection under a unified National Revenue Service, describing it as a step toward improved efficiency and digitisation.

Report Highlights Macro-Micro Disconnect

Presenting the report’s findings, NESG Chief Economist Olusegun Omisakin identified a widening gap between macroeconomic improvements and real business performance.

He noted that while indicators such as GDP growth, foreign reserves, and inflation suggest progress, many businesses particularly in manufacturing—continue to struggle with:

Weak productivity.

High operating costs.

Low capacity utilisation.

Omisakin described this macro-micro disconnect as the central challenge facing Nigeria’s economy, warning that reforms have yet to translate into meaningful gains at the enterprise level.

The report also flagged major business risks, including:

Talent shortages.

Customer attrition.

Cybersecurity threats.

Supply chain disruptions.

Regulatory bottlenecks.

Private Sector Calls for Coordinated Action

In his welcome remarks, NESG Chairman Olaniyi Yusuf said the report comes at a crucial time and is intended to guide policymakers, investors, and business leaders toward more effective decision-making.

A high-level panel featuring industry leaders including representatives from Dangote Industries, the Bank of Industry, Lagos Free Zone, SeamlessHR, and the Federal Competition and Consumer Protection Commission explored practical pathways to boost productivity and ease structural constraints on businesses.

Discussions centred on strengthening collaboration between government and the private sector, improving the operating environment, and sustaining reform momentum.

The event concluded with a unified call for coordinated and sustained action to ensure that Nigeria’s reform programme delivers inclusive growth, stronger enterprises, and rising living standards.

Stakeholders agreed that while progress has been made at the macro level, the next phase must focus on ensuring those gains are felt across businesses and households turning policy success into real economic impact.