By Olawunmi Ashafa
The Nigeria Economic Summit Group (NESG) says the nation’s current economic reforms must now shift decisively from stabilisation efforts to policies that attract investment, boost productivity, and deliver inclusive growth.
Its Chairman, Mr Yusuf Olaniyi, said this at the launch of the 2026 Private Sector Outlook Report titled: “The Productivity Imperative for Nigerian Businesses”, on Thursday in Lagos.
Olaniyi said the country had entered a “critical transition phase” in its reform journey, where macroeconomic gains must be translated into real economic outcomes for businesses and households.
He said that while recent policy measures had improved key indicators, including growth and exchange rate performance, they had yet to significantly improve productivity at the firm level.
He said the economy had begun recovering from prolonged instability, with Gross Domestic Product (GDP) growth estimated at 3.9 per cent and inflation moderating to about 3.3 per cent in 2025, while the exchange rate stabilised within a narrower band.
Olaniyi said, “These improvements reflect early gains from fiscal and monetary reforms.
“However, reforms alone do not create growth. Investment, skills, and productivity are what drive real expansion.”
He stressed that sustaining investor confidence would depend on consistency in policy direction, regulatory credibility, and stronger institutional accountability.
“Nothing undermines confidence more than inconsistent policy signals. Investors need predictability to commit capital and scale operations,” he added.
Olaniyi noted that in spite of expansion in private sector activity, structural constraints such as high energy costs, weak infrastructure, limited access to finance, insecurity, and logistics inefficiencies continued to suppress productivity.
He also highlighted emerging risks facing businesses, including weak consumer purchasing power, intensifying competition, talent shortages, cybersecurity threats and rising geopolitical uncertainty.
“The business environment is becoming more complex. Companies must now compete not just on survival, but on efficiency, innovation, and scalability,” he noted.
He urged firms to transition from resilience to transformation by adopting five strategic priorities: energy independence, diversified financing, talent retention strategies, supply chain localisation, and stronger cybersecurity investment.
For policymakers, he said the next phase of reform must focus on bridging the gap between macroeconomic progress and enterprise-level performance.
“Policy reform must now be matched with targeted interventions that reduce production costs, improve infrastructure, and expand access to finance,” Olaniyi said.
Also, Director-General of the African Development Bank (AfDB) Nigeria Office, Mr Abdul Kamara, said Nigeria and other African economies were undergoing difficult but necessary reforms aimed at unlocking long-term growth.
He said while macroeconomic indicators were improving, structural challenges such as infrastructure gaps, limited value addition, and weak industrial capacity remained major constraints.
“These are not short-term issues. They require sustained investment in transport, energy, water, sanitation, and agro-industrial development,” Karama said.
He noted that the AfDB was working closely with the Nigerian government on a long-term strategy focused on strengthening productive sectors and expanding private sector participation.
The director- general said the focus must now shift from reform implementation to “post-reform consolidation”, where policy gains are converted into real economic value.
“The central question is no longer whether Nigeria can reform, but how it can convert reforms into inclusive and investment-driven growth,” he said.
He added that Africa’s development priorities must align with private sector growth, stressing the need to unlock financing, improve competitiveness, and remove regulatory bottlenecks that hinder productivity.
Kamara said the AfDB would continue to support initiatives aimed at strengthening infrastructure and improving the enabling environment for businesses.(NAN)
Edited by Folasade Adeniran
