Market Reforms For Shared Prosperity In Nigeria: Lesson From China Growth Miracle

Abstract

Nigeria's economy is characterised by elevated uncertainty which partly explains the reluctance of private investors (domestic and  foreign) to commit their wealth to the Nigerian economy over the long term. This is manifested in the subdued performance of Foreign  Direct Investment (FDI) inflows, which stood at US$468.1 million in 2022, down from US$4.7 billion in 2008. Moreover, Nigeria's  investment as a share of nominal Gross Domestic Product (GDP) has experienced a consistent decline since 1999, from 38.3 percent to  14.7 percent in 2017. Despite the recent increase, it still falls below the 1999 performance. Nigeria's path to achieving shared prosperity requires an efficient and functional market system. This paper leans on the Chinese experience to suggest relevant market reforms that  could be pursued in Nigeria.