Nigeria at 66: Unlocking Low-hanging Fruit for Economic Growth

EDGY OPTIMIST BY Obinna Chima

Since gaining independence on October 1, 1960, Nigeria has pursued one economic ambition after another, from industrialisation, diversification and inclusive growth — yet the fundamental challenge of how to turn the country’s vast natural, human and productive resources into sustained economic prosperity remains.

Some of the factors that have stalled the country’s industrialisation story in the past 66 years include policy somersaults, market failures, lack of political will and market distortions. These challenges have, over the years, constrained investment, weakened domestic production and made it difficult for industries to operate at the scale required to transform the economy.

Indeed, the slow pace of industrialisation has contributed to the nation’s disappointing performance in tackling poverty and creating enough productive jobs for its growing youth population. More importantly, weak domestic production has left Nigeria heavily dependent on imports, exposing the economy to external shocks and fluctuations in global commodity prices.

That vulnerability becomes particularly evident whenever commodity prices decline or global growth slows. With a large share of domestic demand still met through imports, pressure on foreign exchange easily translates into pressure on the naira, making the currency a key barometer of the economy’s underlying strengths and vulnerabilities.

Nigeria no doubt has enormous economic potential due to its abundant resources and young population. The country has the potential to manufacture many products that are currently being imported. Its investment appetite is huge and driven by many opportunities, as well as the level of return on investment.

It is well documented that Nigeria has a difficult business environment. The country ranks low in the global ease of doing business ratings as it faces challenges in areas such as getting electricity, registering property, paying taxes, and resolving insolvency. Additionally, Nigeria’s economic growth is severely hampered by corruption, which both local and foreign investors frequently point to as a major deterrent to conducting business in the country.

The harsh business environment has also been largely attributed to lack of government’s commitment to policy execution, among others, as successive governments would always declare their intention to support business operators, but end up, most of the time not living up to their promise.

Without resolving the power sector crisis and guaranteeing that Nigerians have access to reasonably priced energy, the country cannot hope for significant national economic development, as businesses are forced to produce a sizable amount of their electricity due to challenges in the power sector.

The Minister of Power, Joseph Tegbe, was apparently deceived by those he claimed were electricity consumers who told him recently that their “freezers were freezing,” in a country that continues to experience constant total and partial grid collapses due to obsolete infrastructure, gas shortages, and weak grid management.

According to the Nigerian Electricity Regulatory Commission’s April 2026 operational performance data, the 28 grid-connected plants covered by the report had an average available generation of 4,286MW from an installed capacity of 13,625MW, representing a plant availability factor of 31 per cent. These act as a barrier to widespread economic development, as many companies run their operations using generators that run on costly diesel, which drives up prices even more.

Therefore, improving the country’s business environment to support domestic businesses and enthrone a friendlier investment climate remains one of the low-hanging fruits for stimulating economic growth, which, as at the second quarter of 2026, stood at 4.4 per cent. While the figure represents progress, it remains too low to deliver the scale of job creation, poverty reduction and structural transformation required by a rapidly growing population.

For Nigeria to achieve stronger and more sustainable growth, policymakers must move beyond rhetoric and translate reforms into lower production costs, greater investment, higher productivity and expanded domestic capacity.

Today, the country’s ability to attract the much-desired foreign investment remains low compared to its peers. Therefore, the federal and state governments must understand the fierce urgency to increase investment and expand trade in the country. It is the primary responsibility of governments to create an enabling environment where people can do business and investors would find it attractive to invest. If they can execute this successfully, businesses will thrive and the government would benefit in terms of revenue generation.

Simplifying regulations, streamlining bureaucratic processes, and fostering a more predictable business environment are not just desirable goals, but essential for Nigeria to reach its full potential.

Creating a more business-friendly climate would signal to international investors that Nigeria is open for business and would encourage the growth of small and medium-sized enterprises, which are the backbone of any economy.

Additionally, it reduces opportunities for corruption, promotes a level playing field for businesses, increases public trust in government, and enhances the country’s global competitiveness by making it more attractive for trade and investment in the long term.

Improving the ease of doing business in Nigeria is a strategic imperative for the country’s economic future. The achievement of double-digit growth, which is the target of the government, achieving a drop in inflation and a friendly macroeconomic environment would also require a shift in policy focus. Monetary policy must be supported and sustained by a robust fiscal framework and comprehensive structural reforms. Policy reform can impact positively on the environment for ordinary Nigerians and contribute to stimulating FDI. By addressing these concerns, it would be easier for domestic and foreign investors to do business in the country.

With this, Nigeria can unlock its vast potential, attract investment, create jobs, and improve the lives of its citizens.