Policy inconsistency drags Nigeria’s economic growth – Experts

Experts only made little progress after 25 years of democracy, highlighting that policy inconsistencies have dwarfed the country’s growth.

Speaking at the ‘National Economic Dialogue’ organised by the Nigerian Economic Summit Group in Abuja on Wednesday, Niyi Yusuf, chairman of NESG, said that ensuring sustainable economic growth requires more than just policy changes but concerted efforts to address the underlying systemic issues in the country.

According to Yusuf, in charting a resilient economy for Nigeria, critical areas that must be taken seriously include economic diversification, human capital development, security and Infrastructure Development, good governance and transparency, and inclusive growth.

He said, “Over the past quarter-century, Nigeria has experienced significant transformations—politically, socially, and economically. Our democracy has matured, our economy has evolved, and we have made strides in various sectors such as telecommunications, agriculture, and services reflecting our collective efforts to diversify our economy and create opportunities for millions of Nigerians.

“However, as we gather here today, we must also acknowledge the challenges that have persisted, particularly those stemming from policy inconsistencies, governance deficits, and economic vulnerabilities. Businesses and entrepreneurs continue to suffer from the increasing cost of doing business, while citizens now suffer from rising costs of living. Poverty, unemployment, insecurity, and corruption are issues that continue to hinder our progress.

“The lessons we have learned from these challenges are clear: sustainable economic growth requires more than just policy changes; it demands a concerted effort to address the underlying systemic issues that have held us back.”

The dialogue, he said, provides an opportunity to take stock of the country’s economic trajectory over the years, celebrate successes, critically examine our shortcomings, and identify the impact of policy inconsistencies on the nation’s development.

“We must ask ourselves: How can we ensure that the gains we have made are not only preserved but also built upon? How can we build institutions, achieve policy consistency and continuity that will drive sustained economic growth?

To shape a prosperous socio-economic future, we must embrace collaboration as a fundamental principle.

“The challenges we face are complex and multifaceted, requiring the combined efforts of the public and private sectors, civil society, and international partners. We must work together to create an environment that fosters innovation, supports entrepreneurship, and attracts investment. This collaborative spirit must extend to all levels of government and across all sectors of society,” he said.

In his remarks, Abubakar Bagudu, the minister of budget and economic planning, noted that Nigeria, through the past 25 years, has still not reached the desired position, which he said includes a $33,000 per capita income by the year 2030.

“We want to ensure that we are investing no less than $100 billion per annum. But if our experience in the last 25 years should serve us as a guide, we know sometimes how difficult it is.

“In the last 25 years, we are not where we want to be, we have not achieved the income per capita that we require, and it’s not for lack of trying, it’s not for lack of success, some of which have been mentioned by aligning transformation in the telecommunications sector, at some point we even reduced our GDP.

“The fundamental objectives and directive principles of the state, which is chapter two of our constitution, is very, very clear about the political objectives of the country. They are very clear about the economic objectives, what kind of economy we want to run. They are very clear. When Agenda 2050 was drawn, it reflected those objectives. We want a nation that includes all. We want a higher per capita by the year 2050.

“Some of the achievements in the last 25 years are a reflection of the ability of the post-cooperation sometimes between the tiers of government. That is how we can fund the Niger Delta Power plants, which is a cooperative investment between federal, state and local governments. So even in a constitutional democracy where all tiers are separate, our constitution, our planning process requires cooperation between the levels of government and the private sector.”

For Femi Gbajabiamila, chief of staff to the President, Nigeria is currently faced with various socio-economic challenges that threaten the very existence of the national union. He stressed the need for Nigerians to be actively involved and take up the responsibility to ensure the nation’s development.

“The success of the Nigerian project and the progress and prosperity of our nation’s peoples depends on each of us knowing and operating with the knowledge that Nigeria belongs to us all, and we each have a responsibility to build a nation and leave a legacy we can be proud of.

“We choose to answer the unsettled questions of our nationhood, and in doing so, free our people to thrive here at home in a manner unlike ever before. This dialogue at this time in our nation’s history provides us with an opportunity to collectively proffer answers to critical questions that will determine the survival of our national union and define the conditions of that union.

“The answers we choose about how we manage the economy, how we operate our politics, our government functions, and how we handle our differences as citizens will determine the kind of country we get to live in and leave for our children. We have a lot of work to do, no question, and the destiny of our nation depends on how well we do the job that this moment requires of us,” he said.