The Nigeria Economic Summit Group (NESG) has identified 115 opaque legislations stalling Nigeria’s economic progress, thus sparking calls for urgent reforms to strengthen the country’s economic framework.
This was disclosed by NESG Chief Executive Officer, Dr. Tayo Aduloju, during the group’s quarterly media engagement over the weekend.
Aduloju revealed that the NESG’s Earnest Shonekan Centre is currently working to review and propose corrective versions of these laws. “We are addressing these legislative barriers with a focus on creating a clear pathway for economic revitalisation,” he said.
Reviewing Nigeria’s economic performance in 2024, Aduloju noted that while inflation has begun to decelerate, its pace remains insufficient to ease the burden on Nigerians. He attributed the lingering inflationary pressures to structural challenges, including the removal of fuel subsidies and persistent instability in the foreign exchange market.
“Though inflation is slowing, the structural issues driving it, such as the fuel subsidy removal and foreign exchange dynamics, remain significant,” he stated.
To achieve meaningful growth, Aduloju stressed the need for a comprehensive redirection of economic policies. He urged the government to prioritise investments and spending plans that align with growth objectives while ensuring transparency and efficiency in social investments.
Pointing out the importance of social programmes, Aduloju argued that increased social investment must be accompanied by visible accountability to gain public trust. “Social investments have struggled to gain citizens’ trust because they lack broad accountability. Without transparency and transmission efficiency, Nigerians will not believe these investments are impactful,” he said.
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Speaking on Nigeria’s debt profile, Aduloju called for a shift in focus from debt-to-GDP ratios to the strategic purpose of debt. He noted that the key question is not the size of the debt but its usage in driving growth and productivity.
“The real concern is not the debt-to-GDP or debt-to-revenue servicing ratios but the fundamental question: what is the debt pursuing? If debts are tied to consumption rather than productive investments, they fail to trigger economic growth and productivity,” Aduloju explained.
He pointed out that while Nigeria’s debt-to-revenue servicing ratio has improved, from 123 percent in a previous cycle to 60 percent, the critical issue remains the alignment of debt with growth-enhancing projects.
“The biggest challenge with Nigeria’s debt is the lack of clarity on what the debt is supporting. In recent years, it seems debts have primarily been used to keep the budget afloat, rather than driving key productivity sectors,” he added.
Aduloju called on the media to play an active role in scrutinizing governments’ spending and debt utilization.
“The media must spotlight the purpose of Nigeria’s debt. What are these debts supporting? Are they enabling economic transformation, or are they simply patching fiscal gaps? These are questions that need answers,” he said.
Aduloju also called for a unified approach to redirect economic policies towards sustainable growth stating that “Economic growth must reflect in the balance sheet, investment priorities, and spending plans. While growth is essential, it must also be inclusive, ensuring that Nigerians are carried along through impactful social investments”.