Business
Adesina decries Nigeria’s GDP decline, urges bold reforms to avert economic crisis
President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has expressed deep concern over Nigeria’s dwindling economic fortunes, describing the country’s growth trajectory as anaemic and unsustainable.
Speaking at the 20th Anniversary Dinner of investment firm Chapel Hill Denham, Adesina, a former Nigerian Minister of Agriculture, revealed that Nigeria’s Gross Domestic Product (GDP) per capita has plummeted from $1,847 at independence in 1960 to just $824 in 2024—a stark indicator of economic decline.
Delivering a keynote address titled “Reimagining Nigeria by 2050”, Adesina noted that despite modest gains in 2010, when GDP per capita peaked at $2,120, the country has since suffered setbacks due to a combination of structural and policy-related issues.
He identified poor fiscal discipline, frequent policy reversals, weak economic governance, and over-dependence on crude oil as key factors driving the country’s regression. Other contributing challenges include dilapidated infrastructure, limited industrial output, currency devaluation, and stagflation—marked by high inflation, stagnant growth, and rising unemployment.
Adesina contrasted Nigeria’s economic journey with that of South Korea, whose GDP per capita rose from $158 in 1960 to $36,132 in 2024—43 times that of Nigeria’s current level. He attributed South Korea’s progress to its robust domestic savings base, particularly in pensions, which has grown to $830 billion. In comparison, Nigeria’s pension fund stands at just $13 billion.
According to the AfDB president, the glaring disparity highlights Nigeria’s urgent need to rethink its economic strategy and embrace a growth model that prioritizes productivity, innovation, and private sector investment.
“There must be a shift from a mindset of managing poverty to one of creating wealth,” he said, stressing that anything less would be a disservice to future generations.
Adesina outlined five critical priorities for Nigeria’s transformation by 2050. Chief among them is universal access to reliable, affordable electricity—a foundation he said is essential for economic revival. He advocated for massive private sector participation in the energy sector through cost-reflective tariffs, transparent power purchase agreements, and blended financing models. He also encouraged Nigeria to join the AfDB and World Bank’s “Mission 300” initiative to scale up electrification.
He further called for investment in world-class infrastructure—transport, digital connectivity, and essential services—to boost Nigeria’s competitiveness within the African Continental Free Trade Area.
Adesina urged the strategic deployment of pension and sovereign wealth funds into infrastructure, supported by innovative financing tools and a deepened capital market.
To drive industrialization, he stressed the need for Nigeria to develop a globally competitive manufacturing sector, taking cues from the industrial successes of Asian economies like South Korea, Malaysia, and Vietnam.
In his concluding remarks, Adesina maintained that with bold reforms and visionary leadership, Nigeria could reclaim its economic potential and chart a path toward shared prosperity.
