As Nigeria navigates its complex economic landscape, the Nigerian Economic Summit Group (NESG) remains steadfast in its commitment to shaping the country’s future. Despite the current sluggish improvement in GDP growth, NESG predicts a shift towards accelerated growth in the next few years. To achieve this, NESG will continue to play a crucial role as a watchdog, identifying catalysts and drivers of growth.
The Nigerian Economic Summit Group (NESG) is poised to drive Nigeria’s economic growth, identifying opportunities and challenges, and developing strategies for development. According to Tayo Aduloju, NESG’s CEO, the organization is committed to collaborating with stakeholders to create a more prosperous and inclusive Nigeria. With the right policies and reforms, NESG believes Nigeria can achieve accelerated growth, becoming a beacon of hope for Africa and the world.
NESG’s vision is to transform Nigeria’s institutions from being extractive to inclusive, driving growth that is open, sustainable, jobs-led, and socioeconomically equal. With a focus on radical economic transformation, NESG aims to ensure that fewer people are left behind as the economy recovers and grows.
What are the primary challenges facing Nigeria’s economic growth, and how does NESG plan to address them?
The Nigerian Economic Summit Group (NESG) plays a crucial role in addressing Nigeria’s economic challenges. As a private-sector-led think tank, the NESG provides policy options and solutions to drive economic growth.
The NESG’s four key roles enable it to make a significant impact. Firstly, it acts as a watchdog, shaping policy through research and evidence-based analysis. Secondly, it facilitates public debates and dialogues to drive policy change. Thirdly, it connects critical stakeholders to drive positive change. Lastly, it provides technical assistance and support to execute policy change.
The NESG plans to promote a globally competitive, sustainable, and inclusive economy. To achieve this, it will continue to provide policy options, watchdog the economy, facilitate national conversations, mobilize connections, and intervene where necessary.
Ultimately, the NESG’s efforts aim to drive sustainable economic growth, reduce unemployment and poverty, and improve the overall quality of life for Nigerians.
How does NESG balance the interests of private-sector stakeholders with those of the public sector?
The Nigerian Economic Summit Group (NESG) balances the interests of private sector stakeholders with those of the public sector through its seven guiding principles. Established in 1993 and revised in 2019, these principles provide a framework for promoting economic growth and development in Nigeria.
The principles include commitments to democratic governance, the rule of law, and an enabling environment for business. They also emphasize the importance of private sector-led investments, a free open market economy, and an inclusive and sustainable society.
By adhering to these principles, the NESG is able to regulate the interests of various stakeholders, including the public and private sectors, civil society, and development partners. This ensures that economic growth is inclusive and sustainable, and prioritizes the national interest.
What policy reforms would you advocate for to stimulate economic growth in Nigeria?
The Nigerian Economic Summit Group (NESG) advocates for policy reforms to stimulate economic growth in Nigeria. Given the country’s current economic instability, a phased approach is necessary, starting with stabilization policies.
In the past, the NESG has advocated for opening up the Nigerian economy, which was previously closed. However, the current focus is on addressing macroeconomic instability, high inflation, and a high cost of living.
To achieve this, the NESG proposes a combination of measures, including a liquidity strategy, asset visualization, liability management, and fiscal governance reforms. Investing in infrastructure development, particularly energy infrastructure, is also crucial for driving productivity.
Furthermore, the NESG emphasizes the need for industrialization to absorb the unemployed workforce and create high-intensity jobs. Capitalization of critical sectors, such as manufacturing, is also necessary to unlock growth.
Ultimately, the NESG’s goal is to stimulate inclusive economic growth, which requires investing in human capital development, increasing access to finance, and strengthening institutional capacity.
How does NESG measure the success of its economic policy advocacy efforts?
The Nigerian Economic Summit Group (NESG) measures the success of its economic policy advocacy efforts through the policy life cycle framework. This framework consists of four phases: agenda setting, policy change, policy implementation, and policy impact.
The NESG’s success is evaluated based on its ability to set policy agendas, translate them into policy changes, ensure effective implementation, and ultimately achieve a meaningful impact on citizens, markets, and the economy.
What inspired you to take on the role of CEO at NESG, and what are your long-term goals for the organization?
The Nigerian Economic Summit Group (NESG) has been a second home to me, having been a member, volunteer leader, and employee. My inspiration for taking on the role of CEO stems from my passion for NESG’s mission to promote a globally competitive Nigerian economy.
I have been inspired by corporate statesmen and elder statesmen who have demonstrated selfless leadership and commitment to the national interest. As CEO, my goal is to cultivate the next generation of leaders, strengthen NESG’s capacity as a think tank, and build a robust knowledge base for Nigeria’s economic transformation.
NESG’s long-term goals include building world-class research infrastructure, fostering national leaders, and creating a vibrant private sector community. We aim to contribute to Nigeria’s economic transformation, stabilization, and acceleration, ultimately envisioning a Nigeria with a high human capital environment, driven by digital industrialization, and characterized by globally competitive, inclusive, and sustainable economic growth.
How do you foster collaboration between the public and the private sector leaders?
The Nigerian Economic Summit Group (NESG) fosters collaboration between public and private sector leaders through its public-private dialogue principles.
The NESG’s public-private dialogue practice is based on coordination, collaboration, and cooperation between the public and private sectors. This begins with setting the right purpose and policy agenda that brings the public and private leaders together.
The NESG ensures collaboration is balanced through platforms that provide the structure for equal, multi-stakeholder, actual representation from the public sector, and from the private sector. This includes federal, state, and local governments, as well as the executive, legislature, and judiciary.
The NESG drives collaboration by ensuring that the public and private sectors agree on the right inputs, based on evidence. The organization also ensures that the public and private sectors agree on the right outputs, and holds each other accountable for tracking those results.
The NESG uses an accountability framework tied to public-private dialogues to ensure that everyone remains focused. The organization also drives public-private collaboration through facilitation, ensuring that the people and resources required to translate policy agendas into policy execution are moving efficiently all year long.
Finally, the NESG has a joint accountability framework for monitoring and evaluation. This ensures that the organization and its stakeholders are held accountable for the results of their collaboration.
The NESG’s annual summit has been a big part of ensuring collaboration between the public and private sectors. The organization’s policy commissions also provide a structured representation and collaboration mechanism that operates throughout the year.
What leadership qualities do you believe are essential for driving economic reform in Nigeria?
The Nigerian Economic Summit Group (NESG) conducted a reform climate study that identified essential leadership qualities for driving economic reform in Nigeria. A clear vision for reforms is necessary, providing a clear picture for people to follow.
Clear political leadership is required to mobilize political will, deploying decisions, resources, teams, and institutions to translate policy agendas into results. Leaders need to lead from the front, demonstrating a policy ethos that aligns with the character of the leaders.
The pathos of the reform is also crucial, requiring leaders to be empathetic and listen to people’s concerns and feedback. Leaders must become sensitive to the reform ethos and pathos, using feedback to learn and communicate that they care.
A clear vision, massive political will, empathy, and reform ethos are essential qualities for leaders driving economic reform in Nigeria. Nigeria’s diverse stakeholders and interests require a leader who can balance competing demands and drive economic reform.
These leadership qualities are necessary to overcome the challenges of driving economic reform in Nigeria.
How does NESG ensure transparency and accountability in its operations?
The Nigerian Economic Summit Group (NESG) operates a robust corporate governance structure that begins with a board of advisors and trustees. This board oversees the long-term alignment of NESG to its mission, vision, and mandates.
Under the board of advisors is a board of directors that oversees the daily running of the NESG. The organization has had a robust and dynamic transition in corporate governance over the last 30 years.
NESG has had smooth transitions at the level of the chairman and chief executives, guaranteeing that the institution remains transparent and accountable to its stakeholders by maintaining corporate governance principles.
The organization holds an annual general management meeting every year. The board fulfils its financial responsibilities through effective auditing and accounting, performance management, and results management of NESG’s work operations and resources.
NESG remains accountable to the Nigerian people broadly for the advocacy it provides to the government and Nigeria. The organization serves in the national interest, beyond public, political, or private interests.
NESG operations are significantly funded by private-sector subscriptions. Members review the annual performance of NESG at annual general meetings, forming the basis for strengthening the organization’s enterprise risk and governance architecture to ensure transparency and accountability in all its operations.
Can you share some notable research outputs from NESG that have informed economic policy decisions?
The Nigerian Economic Summit Group (NESG) has produced notable research outputs that have informed economic policy decisions. NESG’s work on telecommunications in 1996 provided a comprehensive analysis of the sector’s future, shaping policy transformations in 1999 and driving growth.
The organization’s evidence-based analysis of pension reforms became the foundation for the Pension Reform Act. NESG’s infrastructure analysis in the 1990s influenced liberalization policies, leading to significant expansion in maritime, aviation, and rail operations.
NESG’s recommendations on central bank autonomy led to its full autonomy in 1995, paving the way for banking consolidation reforms and a resilient banking industry. NESG’s development pathways and analytic work informed the Economic Recovery and Growth Plan (ERGP) 2016, helping Nigeria recover from the 2016 recession.
NESG’s global benchmarking analysis contributed to Nigeria’s reflection on its long-term agenda, aiming to join the League of Mint and BRICS nations. NESG’s research continues to shape ongoing reform conversations, including the Companies and Allied Matters Act (CAMA), Secured Transactions Act, and tax reform debates.
How does NESG’s research agenda align with Nigeria’s national development goals?
The Nigerian Economic Summit Group (NESG) has played a significant role in shaping Nigeria’s national development goals through its research agenda.
Since 1993, NESG’s summits have informed and influenced national development planning, starting with the Vision 2010 Agenda. This agenda was later rolled into the Economic Reform Action Plan and the National Economic Empowerment Development Strategy (NEEDS).
NESG’s research also contributed to the development of the Vision 2020 Agenda. The organization provided over 650 experts to support the drafting process.
Additionally, NESG has provided technical assistance to the government in shaping the Economic Recovery and Growth Plan (2017-2020). The organization has also supported the development of a medium-term development plan (2021-2025) during the COVID-19 pandemic.
NESG has been active in advocating for and supporting the government’s efforts to develop a new economic strategy for growth, acceleration, and economic transformation in Nigeria.
What role does data-driven decision-making play in NESG’s advocacy efforts?
Data-driven decision-making is the backbone of the Nigerian Economic Summit Group’s (NESG) advocacy efforts. Everything NESG does is founded on evidence, and data analysis plays a crucial role in shaping the organization’s work.
The annual Nigerian Economic Summit’s theme, for instance, is determined by a macroeconomic scorecard and data analysis. This ensures that the summit’s focus areas are informed by empirical evidence, making NESG’s advocacy efforts more effective and targeted.
NESG’s commitment to data-driven decision-making is reflected in its approach to events and policy recommendations. No event or recommendation is made without being backed by data and evidence. This rigorous approach has earned NESG its reputation as a trusted and influential think tank in Nigeria.
By relying on data-driven insights, NESG is able to provide actionable recommendations that address the country’s economic challenges. This approach has been instrumental in shaping Nigeria’s economic policies and reforms over the years.
Are there any plans to expand NESG’s research focus to emerging areas like renewable energy or fintech?
The Nigerian Economic Summit Group (NESG) has already expanded its research focus to emerging areas like renewable energy and fintech. NESG conducted a cost of electricity study in 2015, providing a fiscal framework to demonstrate the cost competitiveness of renewable energy with fossil fuel energy.
The organization has continued to work on renewable energy, conducting a study on mini-grids in Nigeria in 2019. NESG has also been active in fintech research since 2013, conducting studies on fintech growth, start-up economy, and broadband payment systems.
The organization has advocated for the creation of a standalone sector for fintech and has worked on other emerging areas, including the green economy, creative economies, and industries.
How does NESG engage with international organizations to promote economic cooperation and investment?
The Nigerian Economic Summit Group (NESG) engages with international organizations to promote economic cooperation and investment. NESG approaches international organizations from a Nigerian interest point of view, focusing on crucial conversations about Nigeria’s role in the global trading and international economic system.
The organization engages with institutions like the World Bank, IMF, African Union, and ECOWAS, connecting the dots across common issues affecting African economies, West African economies, and the global South.
NESG’s engagement is guided by principles including enlightened Nigerian interest, shared prosperity, contribution to global peace and security, and investment promotion.
Can you highlight successful public-private partnerships facilitated by NESG?
The Nigerian Economic Summit Group (NESG) has facilitated successful public-private partnerships (PPPs) in Nigeria. NESG played a crucial role in Nigeria’s hosting of bi-national conferences, such as Nigeria-South Africa, Nigeria-US, and Nigeria-UK, which promoted country-to-country partnerships for growth.
NESG’s members, including the Dangote Group, have established successful PPPs with the government, demonstrating the possibility of effective collaborations between the public and private sectors in Nigeria.
NESG has advocated for PPPs as a vital economic strategy for accelerating infrastructure development in Nigeria, recognizing the government’s limited resources to invest in world-class infrastructure.
What strategies does NESG employ to build and maintain relationships with key stakeholders?
The Nigerian Economic Summit Group (NESG) employs various strategies to build and maintain relationships with key stakeholders. NESG uses a radically immersive stakeholder engagement process, engaging with government, private sector, donors, development partners and, subnational, legislative, and judicial stakeholders.
The organization maintains relationships by providing evidence-based research and analysis, supporting stakeholders’ ability to reflect, analyze, and engage in the Nigerian economy.
NESG conveys its message through multiple platforms, including the economic summit, forums, dialogues, and various media channels. By building a physical and virtual following, NESG engages with Nigerians and international stakeholders, fostering connections between business, government, citizens, and other stakeholders.
What are the most significant obstacles NESG faces in promoting economic reform, and how are they addressed?
The Nigerian Economic Summit Group (NESG) has identified seven major obstacles to promoting economic reform in Nigeria. The first challenge is the lack of political will to drive economic reform. This is addressed through evidence-based communication and advocacy to educate and inform political institutions and public circles.
Another significant challenge is the limited state capacity of the government to execute policy proposals. To address this, NESG provides technical assistance to support building strong state capacity. Frequent changes in economic policy due to short-term governance cycles also hinder progress. NESG advocates for legislating economic development and making consensus non-partisan to address this issue.
Keeping citizens engaged is also crucial. NESG employs new platforms and strategies for mass public education and sensitization to achieve this.
Additionally, the outdated legal framework is a significant challenge. At least 115 federal legislations and numerous state regulations hinder the ease of doing business in Nigeria. NESG’s Ernest Shonekan Centre pushes for the transformation of these laws.
The rapid pace of technological change also requires NESG to become more data-intelligent and AI-oriented.
Finally, Nigeria’s youthful population poses significant challenges. NESG’s Agenda 2050 aims to create a digitally industrialized Nigeria with high-productivity sectors driven by technology and know-how.
How does NESG capitalize on opportunities presented by global economic trends?
The Nigerian Economic Summit Group (NESG) recognizes that global economic trends present both challenges and opportunities for Nigeria. Amidst rapid technological change, economic uncertainty, global warming, and conflict, NESG seeks to capitalize on these trends to strengthen Nigeria’s economy.
One significant opportunity lies in the Fourth Industrial Revolution, which Nigeria has yet to fully leverage. Despite some digital transformation, there is still vast potential for technology to impact key sectors like agriculture and manufacturing. However, poor energy infrastructure and logistics hinder this progress.
Climate change also presents opportunities for Nigeria. The global shift towards energy transitions and climate change adaptation strategies has created a consensus on the need for sustainable practices. Nigeria can benefit from proactive engagement in climate-specific resource mobilization and capturing fiscal resources to support its development.
Conflicts, such as the Ukraine-Russia crisis, have created food scarcity, which Nigeria can address by leveraging its agroecological potential to become an alternative global food supplier. Similarly, Nigeria can capitalize on its gas resources to become a significant gas supplier.
Demographic changes also offer opportunities. As an advanced nation’s population, Nigeria’s youthful population can provide highly skilled human capital to meet global demands, potentially generating significant diaspora remittances.
Furthermore, nations with advanced post-industrial revolution technologies may be willing to transfer technology and innovation know-how to Nigeria, enabling the country to leapfrog into high-intensity industrial mechanization and drive productivity and growth for the next two to three decad.es
What role does innovation play in driving economic growth in Nigeria, and how can NESG support it?
Innovation plays a vital role in transforming Nigeria’s economy, as it involves researching and developing ideas that solve critical problems and scale to market-level solutions, driving national growth. However, innovation currently plays a smaller role in the Nigerian economy than it could, primarily due to limited access to finance across the innovation value chain.
To address this, the Nigerian Economic Summit Group (NESG) established the Triple Helix Roundtable, which connects academia, research, and policy ideas on innovation with industry demands and capital. This initiative aims to increase investments in innovation, particularly in research and development (R&D).
The NESG emphasizes that higher investments in innovation yield higher returns on innovation capital, driving economic growth. Unfortunately, Nigeria’s investments in innovation are relatively low. In 2022, the country’s gross domestic expenditure on R&D accounted for only about 0.13% of its GDP, making it one of the countries with very low domestic expenditure on R&D as a percentage of GDP.
The NESG advocates for scaling up investments in R&D and opportunities, recognizing that nations with low R&D expenditure as a percentage of GDP struggle to translate innovation into economic growth. To achieve this, the NESG promotes increasing capital to R&D from the public sector, private sector, and development finance sector, believing that this will drive radical transformation in innovation for economic growth.
What are NESG’s priorities for the next 5-10 years, and how will they be achieved?
The Nigerian Economic Summit Group (NESG) has outlined its priorities for the next 5-10 years, focusing on stabilization, acceleration, and institutional reforms. In the short term, NESG aims to achieve macroeconomic stability by addressing structural drivers of inflationary pressure, particularly in the areas of food security, energy challenges, and trade and investment ¹.
To achieve food security, NESG will focus on productivity, availability, and affordability of food, while resolving energy challenges will involve advocacy and interventions to ensure reliable and affordable energy. Enhancing trade and investment will also be crucial, with a focus on strengthening and expanding trade and investment opportunities to boost economic growth, create jobs, and enhance competitiveness.
Once stabilization is achieved, NESG will shift its focus to acceleration, aiming to attract more foreign direct investment (FDI) into the Nigerian economy and drive growth thresholds of 6-7% in five years. To achieve this, NESG has designated a national posture for Nigeria, emphasizing the need for institutional reforms, including high-bandwidth political institutions, robust military and national security forces, accountability institutions, stronger economic institutions, and social mobilization institutions.
Ultimately, NESG’s priorities centred around achieving inclusive, high-productivity, and job-led growth, with a focus on investments targeted at the productive sector and factors of production. By shifting from a consumption-driven economy to an investment-driven one, Nigeria can achieve sustained growth and development.
How does NESG envision Nigeria’s economic landscape evolving, and what role will the organization play in shaping it?
The Nigerian Economic Summit Group (NESG) envisions Nigeria’s economic landscape undergoing significant evolution in the next few years. Despite the current sluggish improvement in GDP growth, NESG predicts a shift towards accelerated growth.
To facilitate this transformation, NESG commits to playing a crucial role as a watchdog, identifying catalysts and drivers of growth. The organization will continue to advocate for the mobilization of these growth catalysts, supporting radical economic transformation.
NESG’s vision is to transform Nigeria’s institutions from being extractive to inclusive, driving growth that is open, sustainable, jobs-led, and socioeconomically equal. Ultimately, the goal is to ensure that fewer people are left behind as the economy recovers and grows, creating a more equitable and prosperous future for all Nigerians.
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