Nigeria must move beyond economic stabilisation and translate recent reforms into productive investment that expands businesses, creates jobs, raises incomes, and improves living standards, the Nigerian Economic Summit Group (NESG) has said.
The NESG said the country’s next major economic challenge was to attract and mobilise capital on a scale that would strengthen businesses and industries while also developing the people needed to sustain long-term growth.
It made the position in its policy document for the 32nd Nigerian Economic Summit (NES #32), where investment will be a major focus under the sub-theme, ‘Invest Nigeria: Investing in Nigeria’s Future-Mobilising Capital for Growth That Works.’
According to the group, recent reforms aimed at stabilising the economy, improving fiscal sustainability and rebuilding investor confidence were necessary steps, but they would have limited impact if they did not increase productive activity.
‘While these reforms are necessary, they represent only the first step,’ the NESG said, stressing the need to turn improved economic conditions into investment that expands businesses, creates employment and raises incomes.
The group said Nigeria has continued to face a major investment gap, with inadequate infrastructure, limited access to long-term finance, regulatory uncertainty and high business costs restricting businesses’ ability to expand.
It also warned that Nigeria was competing for investment with other economies at a time when global competition for capital was becoming more intense.
The NESG said the issue was therefore not simply how to attract more money into Nigeria, but how to ensure that investment reaches sectors capable of generating wider economic benefits.
It said the country needed an investment environment that could channel capital into activities that improve productivity, create employment and open opportunities for more Nigerians.
The group identified agriculture, manufacturing, infrastructure, technology, energy, mining, logistics and the creative economy as sectors with significant investment opportunities.
It said unlocking those opportunities would require improvements in the investment climate, fewer barriers to business expansion, deeper capital markets and stronger policies that give investors greater confidence to make long-term decisions.
The summit will also examine ways to increase infrastructure financing, improve access to credit for businesses, expand public-private partnerships, and promote industrialisation and competitive value chains.
These measures, according to the NESG, are important to achieving greater economic diversification and reducing constraints that have limited productive investment.
Micro, Small and Medium Enterprises (MSMEs) will also receive particular attention because of their importance to Nigeria’s economy and employment.
The group said improving access to finance, reducing regulatory difficulties and encouraging business formalisation would help MSMEs expand, attract investment and create more jobs.
However, the NESG said investment in physical businesses and infrastructure must be matched by investment in Nigerians themselves.
It said the country’s large young population represented an important economic asset, but significant gaps remained in education, healthcare, workforce readiness and skills development.
The summit will therefore examine investment in education, healthcare, digital literacy, vocational training and workforce development as part of the wider strategy to improve productivity and Nigeria’s competitiveness.
The NESG said it would pay particular attention to ensuring that the skills young Nigerians acquire match the needs of employers and a rapidly changing economy.
It also plans to examine new financing models, public-private partnerships and technology-based approaches that could make quality human-capital services available to more Nigerians.
The group said investment in businesses and investment in people should be viewed as connected parts of the same economic strategy.
According to the NESG, stronger businesses can create employment and income opportunities, while a healthier, better-educated and more skilled workforce can improve productivity, innovation and competitiveness.
It said the combination could create a cycle in which increased investment supports business expansion and employment, while improved human capital strengthens businesses’ and the wider economy’s ability to grow.
The NESG is consequently calling for coordinated action among government, the private sector, development partners and educational institutions.
It said government needed to continue improving the policy environment, while businesses should increase productive investment and innovation.
Development partners, it added, could support the process through catalytic financing and capacity building, while educational institutions should prepare Nigerians for the economy’s changing requirements.
The group said the objective of the Invest Nigeria dialogue was to develop practical solutions to strengthen the country’s investment ecosystem and place investment at the centre of job creation, productivity growth and shared prosperity.