NESG Urges FG to Drive Economic Growth Through Productivity, Not Inflation Control
The Nigeria Economic Summit Group (NESG) has urged the Federal Government to shift its economic growth strategy from inflation management to productivity-driven reforms. In its latest report on the rebasing of Nigeria’s Gross Domestic Product (GDP) by the National Bureau of Statistics (NBS), the policy think tank stressed that the revised GDP figures highlight deep structural weaknesses and fiscal vulnerabilities that cannot be overlooked.
According to NESG, while the upward revision of nominal GDP increases the statistical size of the economy, the reality is that productivity, jobs, and welfare remain stagnant. “Closing this gap requires a coordinated, multi-pronged policy response that tackles both short-term recovery and long-term transformation,” the group said, emphasizing that economic expansion must be tied to real sector performance rather than statistical adjustments.
The report highlighted that Nigeria’s real GDP has grown only 4.4 percent since 2019, underscoring the urgent need to prioritize value-added growth in high-employment sectors. NESG recommended a targeted industrial policy, sector-specific competitiveness programs, and increased technology adoption, particularly in agriculture and manufacturing, to stimulate sustainable growth.
Calling for a state of emergency in the industrial sector, NESG urged the government to address persistent bottlenecks in energy supply, logistics, and input costs. It further advised the use of blended finance, tax incentives, and infrastructure investment to revive critical sectors such as manufacturing, oil and gas, and construction, while also boosting agro-processing and mechanization in agriculture to raise productivity and exports.
NESG also stressed the need for fiscal and financial recalibration to strengthen Nigeria’s economic base. It recommended expanding non-oil revenue through digital tax systems, broadening the tax net, and enforcing compliance. Additionally, it called for performance-based budgeting, enhanced credit access, and deeper capital market mobilization to channel funds into the real economy.
Source: Vanguard