While government displays comparative statistics to pat itself on the back, realities on the ground economy prove it wrong with manufacturing industries in comatose and deep-seated poverty raging across the country.
Intro
The disconnect between Nigeria’s economic statistics and the harsh realities faced by its citizens has become a recurring theme in public discourse. Despite the government’s claims of impressive economic performance, the lived experiences of millions of Nigerians tell a different story. As statistics paint a picture of growth and progress, the prevalence of deep-seated poverty and economic hardship on the ground raises critical questions about the accuracy and relevance of these numbers. While government displays comparative statistics to pat itself on the back, realities on the ground economy prove it wrong with manufacturing industries in comatose and deep-seated poverty raging across the country.
The Pedigrees of the men for the job
President Bola Tinubu , no doubt, knew the challenges for the Nigeria’s economic revival before him were enormous. His appointments of Wale Edun as Minister of Finance and Coordinating Minister of the Economy, and Yemi Cardoso as Governor of the Central Bank of Nigeria (CBN), were believed to be his strategic moves to drive Nigeria’s economic turnaround. Edun brought a strong background in economics, public finance, and corporate finance, while Cardoso boasted a distinguished career spanning over four decades. Together, they were tasked with resuscitating Nigeria’s ailing economy through innovative solutions and policy initiatives.
Their collaboration was expected to yield positive outcomes, with Edun’s focus on public-private partnerships and Cardoso’s commitment to diversity and inclusion likely to attract investments and promote sustainable growth. The synergy between Edun and Cardoso was crucial in navigating Nigeria’s complex economic challenges. Edun’s conventional free market policy approach and experience in financial journalism informed his decisions, while Cardoso’s deep understanding of Nigeria’s economic landscape guided the CBN’s policy initiatives.
President Tinubu’s decision to appoint these seasoned professionals demonstrated his commitment to economic reform and growth. With Edun and Cardoso at the helm of economic policy-making, Nigeria was poised to chart a path towards prosperity, driven by transparency, accountability, and innovative economic solutions. Their leadership was expected to stabilize the economy, attract investments, and promote sustainable growth, ultimately improving the lives of Nigerians.
Decisive Reforms
The duo left no one in doubt of their rich pedigrees from the beginning. As part of their maiden decisions to achieve the goal of economic revival, Wale Edun and Yemi Cardoso oversaw pivotal economic reforms , particularly the removal of fuel subsidies and the unification of the foreign exchange market.
The removal of fuel subsidies, while contentious, was expected to save the government substantial funds that could be redirected towards critical infrastructure projects and social welfare programs. This move was welcomed by financial market actors, who believed it would provide the government with greater flexibility to finance development initiatives and manage its debt obligations more effectively.
The unification of exchange rates was another key reform aimed at stabilizing the economy. By reducing pressure on import costs and enhancing consumer purchasing power, this policy was expected to attract new investments into Nigeria’s oil and gas industry, as well as other sectors.
Although the transition presented challenges, including inflation and slow implementation of social safety nets, the International Monetary Fund (IMF) expressed optimism that these reforms would lead to a more stable and growth-oriented economy in the long term. These maiden decisions demonstrated their commitment to implementing economic reforms and promoting sustainable growth in Nigeria.
They implemented policies to control inflation, with the CBN raising interest rates to reduce inflation from its peak of 34.19% in June to between 20-25% by year-end. They prioritized debt management, successfully reducing the revenue to debt service ratio from 97% in 2023 to 68% in 2024.
OUTCOMES BY GOVERNMENT VIEWS
Perhaps the government is unduly optimistic, underestimating the gravity of economic problem. It readily flaunts favorable macro-economic indicators, reflective of its managerial prowess at arresting the economic decline from further worsening. To the government , in the last two years it has made significant strides in stabilizing Nigeria’s economy and promoting growth. It was reported that inflation had moderated to 28.9% as of February 2024, down from its peak of 34.19% in June 2023, thanks to the Central Bank of Nigeria’s tightening stance and unified exchange rate system.
The economy had grown at an average of 3.4% in 2023, with a notable increase to 3.84% in Q4 2023. The government aimed to accelerate growth to around 7% to substantially reduce poverty and improve living standards. Nigeria’s foreign exchange reserves had also increased, reaching $34.19 billion in February 2024.
Debt management had improved, with the revenue to debt service ratio decreasing from 97% in 2023 to 68% in 2024. The country had saved $20 billion from subsidy reforms, illustrating the potential of disciplined fiscal policies. Private sector investment was expected to play a crucial role in driving growth, with the government targeting infrastructure, digital, and toll roads.
The CBN’s recapitalization efforts had increased banks’ capital adequacy ratio to 14.1% in 2024, aiming to produce resilient banks that could support economic growth. These developments demonstrated the government’s commitment to economic stability and sustainable growth, positioning Nigeria for long-term development.
The government claimed that over the last two years, efforts to stabilize Nigeria’s economy and promote growth had been yielding promise. The Central Bank of Nigeria, it was stated, had been aggressively raising interest rates to combat inflation, which had peaked at 34.19%. The goal, it was noted, was to reduce inflation to between 20-25% by year-end.
The government highlighted that significant progress had been made in debt management, with Nigeria’s revenue to debt service ratio decreasing from 97% in 2023 to 68% in 2024. Initiatives had been implemented to create incentives in key sectors like agriculture and oil and gas, and efforts had been made to attract private capital for infrastructure projects, demonstrating a commitment to stimulating economic activity.
It was emphasized that these efforts were beginning to show promise, although the full extent of their success was still unfolding. The government acknowledged that time would tell if these efforts would yield the desired outcomes, but it was noted that the focus on the right areas suggested a step in the right direction.
Looking into the future, the government had declared its intention to put the economy on a sound footing through measures that would alleviate poverty, create jobs, enhance increased production and reduce the inflationary rate
CRITICS VIEWS
pessimists can afford a chuckle. The economic upturn so much painted by the odd statistics are at variance with the grim reality of life in present day Nigeria.The entire country seems to be suffused with agonies of deprivation, penury and despair, without any hope of immediate succor or better days ahead. The signs of decay are everywhere and the micro-economic unit of households to the larger macro-framework, the general complaint are those of deteriorating, and stifling economic clime, nearly snuffing out the “little life” left of the overburdened populace.
Underscoring the decline, an analyst declared : “it is not easy to sleep well, if you have seen data confirming that your country has created more poverty than any other country in the world with the development paradigm it has pursued since the end of the civil war in 1970s.
Critics have expressed skepticism over the government’s claims of economic stability and growth, arguing that the policies implemented by Wale Edun and Yemi Cardoso have not yielded the desired results for ordinary Nigerians. Despite a reported decrease in inflation from its peak, the current rate of 28.9% remains high and continues to erode the purchasing power of many citizens. The critics question the accuracy of the government’s growth figures, suggesting that the benefits of growth have not trickled down to the majority of Nigerians.
Furthermore, critics argue that the government’s debt management strategies have not addressed the root causes of debt distress. The reduction in the revenue to debt service ratio from 97% to 68% may not be sustainable if revenue growth does not keep pace with debt accumulation. The removal of fuel subsidies, while saving $20 billion, has led to increased costs of living and hardship for many Nigerians.
Critics also contend that the government’s policies prioritize the interests of foreign investors and elites over those of ordinary citizens, exacerbating poverty and inequality. With over 133 million Nigerians living below the poverty line, critics call for more inclusive policies that prioritize job creation, social welfare, and investment in human capital to reduce poverty and improve living standards for all Nigerians. They argue that the government’s policies have failed to effectively address the country’s economic challenges, and that a more pro-poor approach is needed to ensure that the benefits of gr
THIRD EYE VIEWS
Attestation to this claims can be gleaned from the human development index, HDI, combining measures of basic human development indicators such as life expectancy, educational attainment and income within a country. The underlying principles of the HDI is the countries with HDI below 0.5 are regarded as having low level of human development. Those between 0.5 and 0.8, perch on the high level.
Nigeria’s persistent ranking in the low human development category, as reflected in the United Nations Development Programme’s (UNDP) Human Development Index (HDI) report, is a stark indicator of the country’s developmental challenges. With an HDI value hovering around 0.535, Nigeria ranks approximately 163rd out of 191 countries, a position that has remained relatively unchanged in recent years. This ranking is a composite measure of the country’s performance across three critical dimensions: a long and healthy life, access to knowledge, and a decent standard of living.
The factors contributing to Nigeria’s low HDI ranking are multifaceted, including health, education, and economic inequality. Despite some progress in areas like life expectancy and education, the country continues to grapple with pervasive poverty, inequality, and insecurity. These challenges underscore the need for targeted interventions that address the root causes of Nigeria’s developmental stagnation. To climb the HDI ranks, Nigeria must prioritize policies that promote inclusive growth, improve access to quality healthcare and education, and reduce economic disparities, ultimately enhancing the well-being and living standards of its citizens.
Nigeria has not recorded any significant improvement in its HDI within the last few years. Although, the figure increased the index has persistently fared less than the average required for a developing country to achieve meaningful progress.
For Nigeria, the HDI has shown a 22% increase in 19 years but remains low at 0.548, categorizing the country as having low human development. The report emphasizes Nigeria’s significant loss in HDI due to inequality, estimated at 32.7%.
The International Monetary Fund (IMF) has projected a complex economic outlook for Nigeria, marked by temporary relief followed by potential challenges. According to the IMF, Nigeria’s headline inflation rate is expected to average 26.5% in 2025, after the National Bureau of Statistics rebased the Consumer Price Index (CPI). However, this respite may be short-lived, as the IMF anticipates a significant spike in inflation to 37% in 2026. This forecast highlights the persistent challenge of price stability in Nigeria, despite signs of short-term moderation.
Furthermore, the IMF expects Nigeria’s current account surplus to narrow from 9.1% of GDP in 2024 to 6.9% in 2025, and further down to 5.2% in 2026. This decline indicates increased pressure on Nigeria’s external balance, potentially due to global uncertainties and lower oil prices. Consequently, the IMF has revised Nigeria’s economic growth projections for 2025 and 2026, reflecting these challenges.
One of the policies deployed by this administration to tackle the current economic crisis is a programme of fiscal adjustment .The potential consequences of a fiscal adjustment program are significant. Reduced government spending on social programs may affect vulnerable populations, such as the poor and elderly. Fiscal adjustment measures can also lead to job losses, reduced consumer spending, and economic hardship for certain segments of the population. However, successful implementation of the program could lead to improved fiscal stability, reduced debt, and enhanced economic growth in the long term.
Given the complexities and potential implications of a fiscal adjustment program, determining whether Nigeria is engaging in such a program would require specific information about the country’s economic policies and context. The effectiveness of the program’s implementation would also play a crucial role in its success
Wale Edun’s tenure as Finance Minister and Coordinating Minister of the Economy has been marked by a delicate balancing act between demand management and supply-side reforms. His approach to demand management has been steady, leveraging monetary policy to curb inflation and stabilize the naira.
Key reforms include exchange rate unification, removal of fuel subsidies, and tightening monetary policy to control inflation. These measures aim to reduce distortions, promote fiscal sustainability, and attract investment. Additionally, the government has implemented a cash transfer program to support vulnerable households, providing 75,000 naira to 15 million households for three months.
The World Bank and African Development Bank are supporting Nigeria’s efforts with significant financing packages, including $2.25 billion from the World Bank. This financial support will help stabilize the economy and scale up support to the poor. However, Nigeria’s fiscal challenges persist, with the country’s fiscal deficit projected to worsen in 2025 and 2026, according to the International Monetary Fund (IMF).
Also , to drive growth and improve productivity, the government is focusing on the supply side of the economy. This involves investing in infrastructure, promoting innovation and research and development, enhancing human capital, streamlining regulations, and fostering competition. By taking the supply side of the economy to a new level, Nigeria can unlock its economic potential and achieve sustainable growth and development.
Conventional macroeconomic policy, also known as demand management, plays a crucial role in stabilizing the economy, promoting economic growth, and controlling inflation. The government is using monetary and fiscal policies to influence aggregate demand, with the primary goals of stabilizing the economy during fluctuations, promoting economic growth, controlling inflation, and achieving full employment.
While demand management policies can be effective in stabilizing the economy, they are not without limitations and challenges. The government must carefully consider the economic context, policy design, and potential consequences to ensure that the benefits of economic growth are shared by all. By combining fiscal adjustment, supply-side reforms, and demand management policies, Nigeria can promote economic stability and growth, ultimately improving living standards and reducing poverty.
The success of these policies will depend on effective implementation and careful management of potential risks. With the support of international financial institutions and a comprehensive approach to economic management, Nigeria is well-positioned to navigate its economic challenges and achieve its objectives.
Despite the above strategies , the country continues to be bedeviled by various economic ills.
The duo of Edun and Cardoso have not gotten the jokers that are imperative for bailing out this economy. Which business can a honest person do with the current interest and inflation rates? Only the banking and communication industries are prospering in this economy . And their fortunes are highly controversial .Another industry sharing this fortune is the political industry , flagrantly stealing public funds
The Nigerian manufacturing sector is grappling with a pressing challenge: rising production costs that threaten its competitiveness and growth. At the heart of this issue are escalating energy and raw material costs, which are making it increasingly difficult for manufacturers to compete both domestically and internationally. High energy prices, a crucial input for manufacturing, directly impact profitability and competitiveness. Moreover, rising raw material costs, including those for imported materials, further burden the sector, forcing manufacturers to either absorb the increases or pass them on to consumers.
The challenges facing the manufacturing sector are multifaceted. Poor infrastructure, including inadequate power supply and transportation networks, adds to the cost of production, leading to delays, disruptions, and increased expenses. High logistics costs, including port fees and transportation expenses, contribute to the overall cost burden, while unfavorable trade policies and high import duties exacerbate these challenges. Furthermore, multiple taxations and inconsistencies in government policies can negatively impact the sector, limiting its potential for growth.
Another significant hurdle is access to affordable credit. High interest rates and limited access to credit make it difficult for manufacturers to invest in modernization and expansion, hindering their ability to compete effectively. The influx of cheap imported goods also poses a significant threat, as local manufacturers struggle to compete on price.
To address these challenges, a multi-pronged approach is necessary. The government can play a crucial role in easing the financial burden on manufacturers through support measures, infrastructure development, and policy reforms that promote a more conducive business environment. By tackling these issues, Nigeria can create a more favorable environment for its manufacturing sector to thrive, driving economic growth and development.
Nigeria’s manufacturing sector has experienced fluctuations in growth rates, reflecting the country’s economic challenges. In the first quarter of 2024, the sector grew by 1.49%, a marginal decline of 0.12% year-on-year from 1.61% in the first quarter of 2023. Despite this decline, there was a slight quarter-on-quarter increase of 0.12% from 1.38% in the fourth quarter of 2023. The sector’s growth rate hit a three-year low of 2.2% in the second quarter of 2023, attributed to challenging macroeconomic activities.
The manufacturing sector’s growth has been impacted by foreign exchange scarcity, shrinking consumer spending, and high borrowing costs. However, improvements in power generation have led to some positive growth rebounds. For instance, the sector experienced a 7.7% growth in February 2025. These fluctuations highlight the need for sustained policy efforts to address the sector’s challenges and promote stable growth. By addressing these issues, Nigeria can unlock the potential of its manufacturing sector, driving economic growth and development.
Nigeria’s agricultural sector experienced a decline in growth over the past two years, with a growth rate of 1.13% in 2023 compared to 1.88% in 2022, representing a 40% decreaseo. This downturn was accompanied by a decrease in the sector’s contribution to the country’s GDP, from 25.58% in 2022 to 25.18% in 2023. Several factors contributed to this decline, including security concerns, climate-related challenges, and high input costs. Insecurity and banditry have hindered agricultural production in many regions, while climate change has led to droughts and flooding, impacting output.
The decline in agricultural growth is also attributed to declining farm productivity, which experts say is the worst in over four decades. Inadequate infrastructure, including insufficient and outdated food storage and processing facilities, has further exacerbated the issue. Rising costs for fertilizers, seeds, and other inputs have reduced farmers’ profitability and ability to invest in improved farming techniques, leading to lower yields. To revitalize the sector, Nigeria needs to address these underlying challenges, investing in infrastructure, security, and agricultural technology to boost productivity and growth. By doing so, the country can unlock the potential of its agricultural sector and drive economic development.
Nigeria’s industrial output growth has been weak and fluctuating over the past two years, with the manufacturing sector experiencing a decline in output in 2023 compared to 2022. According to Macrotrends, Nigeria’s manufacturing output was $55.74 billion in 2023, a 13.24% decline from 2022. This decline is a significant setback for the sector, which has been struggling to recover from the Covid-19 pandemic. KPMG reported that the manufacturing sector’s average annual growth was 3.4% in 2021 and 2.5% in 2022, indicating a slowdown.
Despite some sectors, like oil, experiencing growth, overall industrial production has seen a mixed performance. The oil sector saw growth in Q3 2024, with average daily crude oil production reaching 1.47 million barrels per day. Industrial production in Nigeria increased by 1.76% in the fourth quarter of 2024 over the same quarter in the previous year. Nigeria’s GDP grew by 3.84% (year-on-year) in real terms in the fourth quarter of 2024. The manufacturing sector’s contribution to Nigeria’s GDP averages 10% annually, which is lower than globally competitive levels. Inadequate financing has been a significant impediment to industrial output growth in Nigeria. To revitalize the sector, Nigeria needs to address these underlying challenges, investing in finance and promoting a more diversified economy with greater emphasis on manufacturing and services.
Nigeria’s domestic real economy has shown resilience and growth over the last two years, with a notable improvement in GDP growth rate from 2.74% in 2023 to 3.4% in 2024. The services sector has been a significant driver of growth, expanding by 5.19% in Q3 2024 and contributing 53.58% to the aggregate GDP. This sector’s performance is a positive indicator for the economy, suggesting a shift towards a more diversified economy.
The agricultural and industry sectors have also shown growth, with the agricultural sector growing by 1.14% in Q3 2024 and the industry sector growing by 2.18% in the same period. The manufacturing sector has accelerated to 1.8% growth in Q4 2024, following a 0.9% expansion in the previous quarter. These trends suggest a broadening of economic growth across various sectors.
Despite these positive trends, Nigeria’s economy still faces significant challenges, including high inflation, which stood at 24.48% in January 2025, and currency instability. The naira has faced significant depreciation due to dollar shortages and a complex exchange rate system.
Looking ahead, Nigeria’s economy is expected to continue growing, driven by non-oil activities and improvements in the services sector. The Central Bank of Nigeria’s monetary policies aim to stabilize the economy and control inflation. With sustained policy efforts and investment in key sectors, Nigeria can unlock its economic potential and drive sustainable growth.
Theperformance of the domestic real economy reflects on the external sector as well. The overall balance of payments position indicatedNigeria’s Balance of Payments (BOP) has recorded a significant surplus of $6.83 billion in 2024, marking a notable turnaround from the deficits of $3.34 billion in 2023 and $3.32 billion in 2022. This development is a testament to the effectiveness of the government’s macroeconomic reforms, which have boosted investor confidence and improved trade performance.
The surplus can be attributed to several key factors, including stronger trade flows, renewed investor confidence, and improved capital account gains. Higher diaspora remittances have also played a crucial role in achieving the BOP surplus. These positive trends reflect growth in the country’s economy and demonstrate the potential for sustained economic momentum.
The Central Bank of Nigeria views this development as a win for businesses and everyday Nigerians, signaling renewed momentum in the country’s economic trajectory. However, the forecast of a current account deficit of $1.7 billion by the end of the current quarter suggests that challenges still lie ahead.
Overall, Nigeria’s improved BOP position is a positive development that reflects the country’s economic resilience and potential for growth. With continued policy efforts and investment, Nigeria can build on this momentum and drive sustainable economic development.
Import duty increases and exchange rate fluctuations are significant contributors to inflationary pressures in Nigeria. When import duties rise, businesses face higher costs for imported goods, which are often passed on to consumers through increased prices. This phenomenon, known as cost-push inflation, drives up the overall price level and erodes consumer purchasing power.
Exchange rate fluctuations, particularly depreciation of the local currency, also play a crucial role in inflation. A weaker naira makes imports more expensive, leading businesses to increase prices and contributing to inflation. The extent to which exchange rate changes affect domestic prices, known as exchange rate pass-through, further exacerbates inflationary pressures.
The impact on consumers is substantial, as increased costs of essential goods reduce disposable income and potentially slow economic growth. Businesses reliant on imported inputs face reduced profit margins, potential investment freezes, and even job losses. Supply chain disruptions may also occur as businesses seek alternative suppliers or reduce import volumes.
To mitigate these effects, policymakers must carefully balance import duties and exchange rate policies to control inflation and support economic growth. By understanding the complex relationships between import duties, exchange rates, and inflation, Nigeria can develop targeted strategies to promote economic stability and prosperity.
In the past two years, expansionary fiscal policies in Nigeria have contributed to rising inflationary pressures due to increased public borrowing and government spending. The government has financed deficits through borrowing, leading to a surge in liquidity without a corresponding increase in domestic investments, which has fueled inflation.
Nigeria’s external debt has experienced significant fluctuations over the past two years, with a notable increase in Naira value and a decrease in dollar value. The total external debt in Naira terms rose from N31.98 trillion in Q2 2023 to N56.02 trillion in Q1 2024, primarily due to borrowing to cover budget deficits and development needs. However, the dollar value decreased from $43.16 billion to $42.12 billion over the same period, indicating a weakening of the Naira against the dollar.
The country’s debt service costs have also risen substantially, with external debt service projected to reach $5.2 billion in 2025. Domestic debt constitutes a larger portion of total public debt, while external debt remains a substantial burden. Nigeria’s economic growth, exchange rate fluctuations, government policies, and external shocks all impact its debt profile.
The increasing debt service costs and growing public debt pose challenges to Nigeria’s economic stability and growth. To manage its debt effectively, the government must implement prudent fiscal policies, prioritize economic growth, and mitigate the impact of external shocks. By doing so, Nigeria can ensure sustainable economic development and reduce its debt burden over time. Effective debt management will be crucial in promoting economic stability and driving growth in the country.
Government policies have significantly impacted Nigeria’s economic growth over the last two years, with notable effects from fiscal, monetary, and trade policies. Fiscal policies, such as government expenditure and taxation, continue to stimulate economic growth, with a 1% increase in public spending potentially leading to a 0.21% increase in economic growth. Government revenue positively impacts economic growth, with a 1% increase triggering approximately 0.64% improvement in economic growth.
However, the impact of fiscal policies can be inconsistent, and government spending is a more effective driver of economic growth than government revenue. Interest rates play a crucial role in Nigeria’s economic growth, with research showing that a 1% increase in interest rates can substantially increase gross domestic product per capita by 0.03%. On the other hand, money supply has been found to deter economic growth, highlighting the need for careful monetary policy management. Trade policies have been found to have a negative impact on economic growth in both the long run and short run, emphasizing the need for strategic policy-making. To promote sustainable economic growth, policymakers should prioritize prudent fiscal policies, effective monetary policy coordination, and strategic trade policies that balance economic growth with price stability.
The government budget plays a pivotal role in shaping the economy, with far-reaching impacts on various sectors and indicators. Over the last two years, the budget formulation and implementation have been crucial in driving economic growth, controlling inflation, and promoting employment.
A well-planned budget has the potential to spur demand, increase productivity, and boost GDP growth by allocating investments to key sectors such as infrastructure, education, and industry. Moreover, effective budget implementation helps maintain price stability and prevents excessive inflation by regulating spending levels and tax policies.
The budget has also had a significant impact on employment, with government spending on public projects and services creating jobs directly and indirectly in the private sector. Investments in education and healthcare have dual benefits, creating a skilled workforce and improving national productivity while reducing household burdens.
However, challenges persist, including fiscal deficits and implementation issues. Unmanaged deficits can lead to increased national debt, inflationary pressures, and reduced fiscal space. Late fund releases, corruption, and inefficient fund utilization can undermine budget effectiveness, highlighting the need for prudent fiscal management and strategic policy-making.
To drive sustainable economic growth, the government must prioritize effective budget formulation and implementation, balancing economic growth with price stability. By doing so, Nigeria can unlock its economic potential, promote employment, and improve the standard of living for its citizens.
Pervasive corruption and inadequate coordination of government investment programs have taken a devastating toll on Nigeria’s economy and society. The economic impact is staggering, with corruption potentially costing the country up to 37% of its GDP by 2030. This translates to a staggering $1,000 per person in 2014 and nearly $2,000 per person by 2030.
Corruption has become a significant deterrent to foreign investment, making it challenging for honest businesses to compete and hindering economic growth. The consequences are far-reaching, eroding public trust in institutions, fueling social unrest, and undermining the rule of law. Corruption also perpetuates inequality, damages democratic processes, and affects human capital development by limiting access to healthcare and education.
The fiscal impact is equally alarming, with corruption leading to a smaller tax base and inefficient government expenditure. Nigeria’s tax revenues stand at 8% of GDP, the lowest for comparable countries. Weak institutions, slow justice delivery, and an environment conducive to crime and bribery further exacerbate the issue.
Inadequate coordination of government investment programs compounds these problems, resulting in inefficient allocation of resources, project delays, and cost overruns. The lack of accountability makes it difficult to hold officials responsible for mismanaging funds.
To break this cycle, Nigeria must prioritize strengthening institutions, increasing transparency, and improving accountability mechanisms. This can be achieved by simplifying regulations, promoting competition, and establishing clear codes of conduct. Citizen engagement is also crucial, encouraging Nigerians to report corruption and promoting education campaigns.
By tackling corruption head-on and improving governance, Nigeria can unlock its economic potential, promote sustainable development, and build a brighter future for its citizens. The time for change is now .