President of the African Development Bank (AfDB), Akinwumi Adesina, has expressed deep concern over Nigeria’s economic growth, describing it as anaemic.
He noted that the country’s Gross Domestic Product (GDP) per capita plummeted from $1,847 at independence to $824 in 2024, a staggering decline that puts its economic future at risk.
Adesina spoke while delivering a keynote address titled “Reimagining Nigeria by 2050,” delivered at the 20th Anniversary Dinner of Chapel Hill Denham.
He observed that 25 years after independence, Nigeria’s GDP per capita had declined to $868, though grew to $2,120 by 2010, it has since dropped to its lowest point in 2024.
Adesina said several factors contribute to the trend, including a lack of bold economic growth policies, frequent policy reversals, weak economic governance, poor fiscal discipline, and over-reliance on crude oil.
He pointed out that the poor quality of infrastructure, limited industrial manufacturing, and persistent currency devaluation were also major challenges.
The AfDB boss added that weak institutions, glaring disconnects in macro and fiscal policies, and stagflation with high inflation, slow growth, and high unemployment have all contributed to the nation’s economic woes.
Comparing Nigeria’s economic trajectory to that of South Korea, Adesina pointed out that the Asian nation’s GDP per capita rose from $158 in 1960 to $36,132 in 2024, 43 times that of Nigeria.
He attributed South Korea’s success to its domestic savings pool, which boosted economic growth, revealing that Nigeria’s pension fund size is only $13 billion compared to South Korea’s $830 billion.
According to him, the stark contrast indicates the vast difference in economic outcomes between the two countries.
Adesina emphasised that Nigeria belongs to the developed League of Nations and must power itself to become a developed country in the next 25 years.
He stressed the need for a mindset change, shifting from accepting underdevelopment as a reality to fast-tracking wealth-creating growth for its population.
Adesina said anything short of this goal is unacceptable, stating that Nigeria must take bold steps to ensure its economic future is bright.
He, therefore, outlined a comprehensive blueprint for the country’s transformation by 2050, which centred around five critical priorities.
According to Adesina, universal access to reliable and affordable electricity is non-negotiable, requiring substantial private sector investment in the energy sector through cost-reflective tariffs, transparent power purchase agreements, and blended finance initiatives.
He urged Nigeria to participate in the AfDB and World Bank’s Mission 300 to accelerate electrification efforts.
Adesina emphasised the need for world-class infrastructure, including transportation networks, digital connectivity, and essential social infrastructure, to attract investment and enhance competitiveness within the African Continental Free Trade Area.
He called for the strategic deployment of pension and sovereign wealth funds into infrastructure, alongside innovative financing mechanisms, and the deepening of local capital markets.
To ignite industrialisation, Adesina stressed the importance of building a strong and competitive industrial manufacturing sector, mirroring the success of Asian powerhouses like South Korea, Malaysia, and Vietnam.