Nigeria’s Economic Growth Slows Amid Weak Industrialisation and Job Deficit, Senate Committee Warns
Nigeria’s economic growth is facing significant headwinds as weak industrialisation, limited investment, and persistent unemployment continue to challenge the nation’s development, the Senate Committee on Trade, Investment, and Industry and Minister of State for Industry, Trade, and Investment, Jumoke Oduwole, said on Monday. The issues were discussed during a defence session on the 2026 budget at the National Assembly, where lawmakers examined the impact of restricted capital allocations on economic expansion.
During the session, senators expressed concern that the 2026 budget largely mirrors last year’s estimates due to delayed capital releases. While recurrent expenditure supports salaries and overheads, limited funding for capital projects is slowing industrial expansion and job creation. Oduwole acknowledged the challenges but stressed that the Ministry is leveraging strategic partnerships and innovative policies to maintain progress despite funding constraints.
Highlighting key initiatives, Oduwole revealed a partnership with a Korean company to develop local electric vehicle manufacturing, a project expected to create about 2,000 jobs. She emphasized that high-employment sectors such as manufacturing, construction, and technology remain central to Nigeria’s strategy to diversify its economy and reduce reliance on oil. She also noted that partnerships with foreign markets, including a commercial agreement with the UAE, are expanding market access for over 7,000 Nigerian products.
The Minister further outlined efforts to support domestic and foreign investors, stating that the Ministry operates as an enabling institution that removes regulatory bottlenecks and facilitates trade. She also discussed the upcoming National Single Window Project, a digital platform designed to streamline trade processes, increase efficiency, and enhance competitiveness for micro, small, and medium enterprises (MSMEs).
Senators commended these interventions but stressed that stronger capital support and public-private collaboration are essential to overcoming Nigeria’s industrial and employment challenges. Committee Chairman Sadiq Suleiman Umar reaffirmed the Senate’s commitment to supporting strategic projects, noting that while economic growth currently stands at 4.2% of GDP—the fastest in over a decade—sustained industrialisation, job creation, and export-led initiatives are critical to securing long-term prosperity for Nigeria.
source: The sun