As President Bola Ahmed Tinubu’s administration marks its second year, the focus intensifies on the economic strategies needed to cement recent gains and steer Nigeria towards greater prosperity by 2027. While initial policy moves have garnered some positive feedback, a consensus among economic experts underscores the urgency for more decisive actions, particularly in tackling insecurity, easing the high cost of living, and boosting investment in vital sectors.
Security: The Bedrock of Economic Revival
A recurring theme from leading economists is the critical link between national security and economic stability. Figures like Niyi Yusuf, Chairman of the Nigeria Economic Summit Group (NESG), and Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), emphasize that resolving insecurity is paramount. They argue it’s a direct enabler of food security, a crucial factor in taming inflation, and a confidence booster for both foreign and domestic investors. David Adonri of Highcap Securities echoes this, suggesting structural reforms in the security architecture are essential to bridge the supply gaps fueling inflation.
Strengthening Macroeconomic Foundations
Experts acknowledge the significant strides in monetary management but call for enhanced synergy between fiscal and monetary authorities in the coming two years. Dr. Muda Yusuf advocates for continued focus on reforms, urging the administration to avoid political distractions. He stresses the need for “fiscal consolidation,” minimizing deficits, and managing the nation’s debt exposure. The NESG also highlighted that savings from subsidy removals (forex, fuel, electricity) should be strategically reinvested by all tiers of government into critical areas like education, health, and food production.
Addressing the Cost of Living Crisis
A major concern for citizens is the escalating cost of living. Olatunde Amolegbe of Arthur Steven Asset Management points out that easing this crisis, stemming from necessary policy reforms, is crucial. This involves tackling inflation through both monetary and structural measures, such as stabilizing the exchange rate, managing interest rates, and addressing the insecurity hampering food production. Dr. Muda Yusuf strongly advises calibrating monetary, fiscal, trade, and tax policies to make basic necessities—staple foods, healthcare, pharmaceuticals, education, and transportation—more affordable for the average Nigerian. The NESG also calls for a rapid expansion of social safety nets to support vulnerable citizens.
Boosting Production, Infrastructure, and Industrial Growth
To generate more revenue and improve the nation’s trade position, the NESG urges prioritization of the NNPCL’s goal to increase oil production to 2.0 million barrels per day and robust support for export-oriented businesses.
Segun Ajayi-Kadir, Director General of the Manufacturers Association of Nigeria (MAN), highlights the importance of fast-tracking projects like the Ajaokuta-Kaduna-Kano (AKK) gas pipeline. He believes its completion, projected for 2025, could significantly boost power supply, reducing manufacturers’ reliance on expensive diesel. Ajayi-Kadir also passionately calls for a “comprehensive industrial policy,” likening a nation without one to “a ship without a rudder,” to guide industrial development and foster growth.
Further emphasizing infrastructure, Mr. Amolegbe calls for sustained investments in transportation, energy, education, and health to lay a solid foundation for long-term economic growth.
Leveraging the Capital Market and Strategic Investments
Dr. Faruk Umar, President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), suggests that President Tinubu should enhance government capital raising through project-tied issuances. He believes the domestic capital market has the depth to play a more significant role in bridging Nigeria’s infrastructure gap and democratizing wealth creation.
Mr. Adonri further advises that capital formation must be directed towards “critically strategic industries” to domesticate the economy, alongside advocating for balanced budgeting and measures to manage population growth.
The Path Forward
The collective voice of these economic experts paints a clear picture: the next two years are pivotal. While foundational reforms have been initiated, the Tinubu administration is urged to accelerate implementation, ensure policy coherence, and decisively address structural impediments, particularly insecurity and the cost of living. The overarching goal is to translate reforms into inclusive growth, tangible relief for citizens, and a more resilient and productive Nigerian economy by 2027.
