Chairman of the Nigerian Economic Summit Group (NESG), Niyi Yusuf has stated that despite current economic gains, Nigeria’s foreign direct investment drive remains weak.
Yusuf stated this during his opening statement at the ongoing Nigerian Economic Summit in Abuja on Monday with the theme: ‘The Reform Imperative: Building a Prosperous and Inclusive Nigeria by 2030.’
According to him, Nigeria must demonstrate openness, fairness, and predictability to attract sustainable capital inflows.
Yusuf stated that the way Nigeria treats its domestic investors will serve as a signal to foreign investors assessing the credibility and stability of the country’s business environment.
He stressed that policy predictability, investment protection and transparent mechanisms for resolving business disputes are critical to rebuilding trust in the economy.
‘How we treat domestic investors will provide the right signals for foreign investors,’ Yusuf said, urging the government to prioritise clarity and continuity in economic policy.
The NESG chairman noted that while Nigeria’s fiscal condition has improved, the economy continues to face persistent inflationary pressures, high debt-service obligations, and subdued investor sentiment.
‘Our fiscal condition has improved, while expectation pressures persist, and the fiscal debt remains the same, widening to N15.5 trillion in 2024. Debt levels are stable, and the debt-to-GDP ratio of 40.6 per cent remains much the same, with a high debt-to-service ratio. Foreign capital is close to the boundary, yet foreign direct investment remains weak,’ he said.
Yusuf reminded participants that policy credibility, incentives, and social competitiveness are essential to attracting long-term capital from both domestic and foreign investors. He said Nigeria’s economic story is one of transition of undeniable progress amid sustained fragility.
According to him, the NESG’s last three macroeconomic outlook reports have outlined a roadmap for economic transformation built around three key phases: stabilisation, consolidation, and acceleration.
The NESG chairman’s comment is coming few days after the Central Bank governor, Olayemi Cardoso disclosed that Nigeria’s reforms are reigniting investor confidence.
What Cardoso said
Speaking at a lecture in Lagos over the weekend on the theme ‘Next Generation Leadership in Monetary Policy and Nation Building,’ the CBN Governor noted that clearing the inherited forex backlog was a decisive move that restored credibility and signalled to markets that the Bank was serious about reforms.
According to him, trust in Nigeria’s financial system has grown stronger because promises were kept.
‘If we expect people to continue to trust and invest in our economy, you’ve got to keep your promises. That particular action contributed in no small way to the rise in foreign exchange reserves we have been able to accomplish,’ he added.
Reflecting on progress since his assumption of office, Cardoso stressed that consistent policies and firm commitment to the CBN’s mandate have placed Nigeria on a stronger footing.
‘Two years later, consistent messaging, consistent policies, doing all the right things, not compromising in your mandate, has taken us to a good place,’ he said.
According to him, the evidence of renewed confidence is clear in reports by international rating agencies, multilateral institutions such as the World Bank, and feedback from global banks. He pointed out that top investment firms which had previously stayed on the sidelines, are now revisiting Nigeria with keen interest.
‘We have seen an incredible increase in appetite for Nigeria. BlackRock, among others, is showing interest. Many who were watching from the sidelines are now saying, This is the time to get in.’ In one word, the future for Nigeria is bright,’ he added.
Nigeria must create 27 million new jobs by 2030
Meanwhile the NESG has warned that Nigeria must create at least 27 million new formal jobs by the year 2030-equivalent to 4.5 million jobs annually, to prevent unemployment from worsening as the nation’s working-age population expands to 168 million within the decade.
The Group stated this in a new report titled ‘From Hustle to Decent Work: Unlocking Jobs and Productivity for Economic Transformation in Nigeria,’ launched at the ongoing 31st Nigerian Economic Summit (NES #31) in Abuja on Monday.
The report calls for an urgent and coordinated national response to tackle unemployment, raise productivity and drive economic transformation.
It warned that without decisive action, unemployment and underemployment could double by the end of the decade, trapping millions of Nigerians in low-skilled, low-paying, and vulnerable work.
According to the NESG, the future of Nigeria’s workforce depends on how quickly the country can move from a ‘hustle economy’ dominated by informal activities to one that delivers decent and productive employment.
The Report stated that while past policies had concentrated on macroeconomic stabilization, the time has come to translate those efforts into sustained job creation and real improvements in living standards.
Presenting the report, Dr. Wilson Erumebor, Senior Economist at the NESG, said the jobs crisis in Nigeria has gone beyond the question of employment numbers and now represents a fundamental development challenge.
‘This is not just a labour market issue; it is a huge development challenge,’ Erumebor said.
‘Without decisive reforms to create decent and productive jobs, an entire generation risks being trapped in vulnerable work that neither lifts families out of poverty nor moves the nation forward.’
He warned that the structure of Nigeria’s economy has created a situation where the vast majority of citizens depend on informal, insecure work to survive.
‘The weak private sector capacity and reliance on the government for wage employment in some states have left millions of Nigerians with the option of finding work in the informal economy,’ he said.
‘The informal sector has become the default employer, absorbing a significant share of the country’s workforce,’ he added.
Erumebor noted that informal jobs, often characterised by low pay, limited security, and minimal productivity, accounted for 92.2 percent of total employment in 2023 and rose to 93 per cent in the second quarter of 2024.
He described this trend as alarming, adding that it reflects ‘the limited private and public investment in sectors that can deliver quality jobs at scale.’
Citing data from the report, Erumebor revealed that ‘a review of informality across the country shows that in more than 18 Nigerian states, informal employment accounts for over 94 percent of total employment. In states such as Kebbi, Abia, Benue, and Borno, the shares are as high as 98 percent, 97.4 percent, 97.3 percent, and 97.3 percent, respectively.’
According to him, ‘this scale of informality has huge implications. Not only does it limit the country’s productivity growth, but it also undermines revenue mobilisation, particularly taxes.’
He added that workers in the informal economy ‘often lack social protection, healthcare, pensions, and legal rights, leaving them highly vulnerable to economic shocks. For many workers, daily earnings are not stable, and job security is not guaranteed.’
To tackle these challenges, the report introduced the Nigeria Works Framework, a blueprint designed to reposition Nigeria’s economy around productivity, enterprise, and inclusive growth.
The framework lays out a comprehensive Jobs and Productivity Agenda, focusing on the development of skills for productivity, sectoral engines of growth, enterprise-led development (especially for small businesses), upgrading the informal economy, strengthening data and institutional systems, and promoting productivity as the foundation of national prosperity.
According to the report, the framework will serve as a guide for policymakers, the private sector, and development partners to create quality jobs and raise living standards over the next decade.
Erumebor said the NESG envisions ‘a Nigeria where productivity becomes the central metric of national competitiveness-tracked, measured, and elevated as the foundation of shared prosperity.’
The report identified manufacturing, construction, information and communications technology (ICT), and professional services as the sectors with the greatest potential for large-scale job creation and productivity growth.
It stressed that investing in these sectors could accelerate industrialization, drive innovation, and generate millions of decent jobs, particularly for young Nigerians entering the labour market each year.
The NESG urged the Federal Government, state governments, and the private sector to treat job creation and productivity improvement as national priorities, noting that these are the true pillars of economic resilience and social stability.
‘The scale of the challenge demands bold, coordinated action,’ the report stated. ‘Nigeria must adopt a productivity-led growth strategy that expands decent work opportunities and ensures that no citizen is left behind.’
The report also reaffirmed the NESG’s commitment to supporting the implementation of practical policy measures that will strengthen the link between economic growth and employment outcomes.
‘Nigeria’s population will reach 275 million by 2030,’ it stated. ‘To stabilise unemployment at current levels, the country must create 27 million new jobs between 2025 and 2030. Productivity must therefore become the central focus of national planning,’ the report added.