NESG Urges FG to Prioritize Economic Stabilization, Productivity, and Job Creation

The Nigerian Economic Summit Group (NESG) has advised the Federal Government to focus on three key priorities to sustain Nigeria’s economic recovery: supporting business continuity, boosting productivity, and creating jobs. NESG Chairman, Mr. Niyi Yusuf, made the recommendations during the H1 2025 Private Sector Forum in Abuja, themed “Staying the Course on Reforms: Turning Economic Gains into Social Progress.”

Yusuf noted that reforms implemented since 2023—such as subsidy removal, foreign exchange market adjustments, and energy sector liberalization—have delivered modest but positive results. Nigeria recorded 3.1% GDP growth in Q1 2025, an increase from 2.3% in Q1 2024, while foreign reserves rose to $41 billion. The country also posted a $5.7 trillion trade surplus, attracted $5.6 billion in foreign capital inflows, and moderated inflation from 24.5% in January to 21.9%.

Despite these improvements, Yusuf emphasized that “much more needs to be done” to consolidate stability. He warned that global economic uncertainty remains high, with emerging markets like Nigeria still battling inflationary pressures, volatile commodity prices, and fiscal challenges. Strengthening social protection and household support, he said, should also remain a priority to cushion citizens against economic shocks.

NESG Chief Economist, Dr. Olusegun Omisakin, presented the outlook for the second half of 2025, projecting GDP growth at 3.8% by year-end. He explained that while the Central Bank’s tight monetary policies have helped curb inflation, they have also constrained private sector lending, with credit growth plunging from 48% in H1 2024 to just 2.8% in H1 2025. Omisakin stressed that Nigeria must now shift focus from stabilization policies toward growth drivers, particularly private sector investment.

In his remarks, Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, underscored the importance of linking taxation to economic activity. He argued that tax revenue can only expand when businesses thrive and jobs are created. “Without jobs and income, tax collection cannot be effective,” Oyedele said, urging the government to create an enabling environment for enterprises to grow, boost productivity, and deepen capital market participation.

Source: Vanguard