Economic and Policy Review

Pathways for achieving a US$4 trillion economy in Nigeria

Mon, 10 Mar 2025 00:00:00 +0000

Nigeria is at a crossroads, brimming with potential yet grappling with the complexities of its historical socioeconomic performance. Endowed with abundant human capital and vast economic resources, Nigeria's current position on critical socioeconomic indicators has not been impressive, compelling it to chart a transformative course towards a brighter future. This article paints a vivid picture of Nigeria's transformed and inclusive future. By 2035, Nigeria's economy is poised to rank among the top 15 global economies, boasting a Gross Domestic Product (GDP) of US$4 trillion and a per capita income of US$14,041.5, thereby propelling the country into the high-income category. To this end, the current paper presents three pathways for Nigeria to achieve economic transformation: economic diversification and sophistication, innovation and digital transformation, and sub-national economic integration strategies.

Rising energy costs: a bane to Nigeria's manufacturing sector transformation

Nurudeen A. Sheu, Abayomi S. Taiwo — Mon, 10 Mar 2025 00:00:00 +0000

The manufacturing sector is indispensable for realising Nigeria's age-long economic transformation quest. However, the rising cost of energy, a critical input factor, continues to raise production costs and undermine the manufacturing sector's competitiveness. This paper explores Vietnam's manufacturing success to draw lessons Nigeria can leverage to become a manufacturing powerhouse in Africa and the world. The paper discusses five episodes in the relationship between energy costs and manufacturing sector growth between 2015Q2 and 2024Q1, with the general conclusion that rising energy costs inhibit manufacturing sector growth in Nigeria. Taking cues from Vietnam, Nigeria should formulate a comprehensive national strategy to reduce energy costs, diversify its energy mix towards renewable energy, and leverage public-private partnerships to mobilise the necessary funding for energy infrastructure projects.

Addressing food insecurity in Nigeria: a practical guide to disbursing government cash transfers and food aid to vulnerable citizens

Bamidele N. Faniyi, Wasiu Adekunle — Mon, 10 Mar 2025 00:00:00 +0000

Due to many Nigerians' deteriorating food security status, this study provides a practical guide to assist the government in identifying highly food-insecure households across the country. Using Maxwell and Caldwell's coping strategies index approach, this study found that food insecurity is more concentrated in rural areas than in urban areas. It was also found that the coping strategies employed by households in both communities include eating less preferred food, limiting meal consumption and buying food on credit. Based on the findings, the study proposes an effective and accountable approach for targeting highly food-insecure households across Nigeria's 774 local government areas.

The gender parity imperative: policy actions for inclusive development in Nigeria

Precious C. Ukaegbu — Mon, 10 Mar 2025 00:00:00 +0000

Gender issues in Nigeria predominate despite efforts to address them through structural and policy reforms. This paper examines the roots of gender inequality in Nigeria and its effect on national development. It also offers actionable recommendations to advance gender equity and ensure a more inclusive and prosperous future for all Nigerians. These gender inequality issues are exacerbated by regional disparities within Nigeria, with women in rural and Northern areas especially disadvantaged. Critical barriers to achieving gender equality include cultural norms, economic obstacles, and the poor enforcement of existing gender laws. The recommendations to solve these problems include community-level sensitisation programmes engaging community leaders, more robust law enforcement, and comprehensive education reforms implementing gender-responsive curricula. Intensifying support systems for gender-based violence (GBV) victims through special courts and shelters is also crucial. It is estimated that closing the gender gap could boost the global economy by US$7 trillion (UN Women, 2024). Therefore, achieving gender equality is a moral imperative and the key to unlocking Nigeria's growth potential. This intricate approach is essential for driving inclusive national development and ensuring women can contribute fully to economic and social prosperity in Nigeria.

Achieving economic transformation in Nigeria: leveraging tailored policies, institutional reforms, and infrastructure development

Nkemdilim Nwadialor — Mon, 10 Mar 2025 00:00:00 +0000

This study analyses how Nigeria can achieve economic transformation in Nigeria. The study is structured into three areas of focus: (i) conceptualisation of economic transformation in developing countries, (ii) critique of Nigeria's effort towards economic transformation and the challenges faced, and (iii) review of comparable countries to identify successful policies that can serve as guardrails for Nigeria. The study adopts the PESTEL framework to review past economic transformation efforts and finds that policies are not being tailored to the Nigerian context, lack a relevant institutional framework, and lack political willpower to execute policies successfully. The study then offers solutions to these issues by analysing comparable countries that have had successful transformations to identify the key drivers and enablers of the transformation effort. It concludes by providing a 3-step policy recommendation built on the Growth Identification and Facilitation Framework (GIFF) to address the failings of previous policy actions by focusing on Nigeria's comparative advantage.