NESG Advocates for Agriculture and Manufacturing as Pillars of Nigeria's Economic Growth
The Nigerian Economic Summit Group (NESG) has asserted that agriculture and manufacturing must serve as the primary engines for Nigeria's economic growth to foster inclusive and sustainable development. The think tank highlighted that the current growth rate of approximately three percent is inadequate to alleviate poverty, stressing the need for an expansion to at least six percent to ensure reforms significantly impact citizens' lives.
Research Head Outlines Economic Outlook and Challenges
Dr. Joseph Ogebe, Head of Research at NESG, presented these insights during a discussion on the March 2026 Business Confidence Monitor and the organization's second-quarter outlook. He acknowledged that recent reform initiatives by the administration have started yielding positive outcomes, evidenced by improvements in GDP growth, exchange rate stability, and moderating inflation. According to Ogebe, Nigeria has transitioned from a crisis phase to a recovery stage, where consolidating gains is now crucial.
"If you compare GDP growth in the pre-crisis period of 2023 with current figures, the difference is clear. Growth was between 2.5 and 2.9 percent in 2023, but it has now improved to about 3.9 percent," he stated. However, Ogebe cautioned that such growth levels remain insufficient, emphasizing that three percent growth cannot reduce poverty and calling for higher, more inclusive growth.
Sectoral Performance and the Need for Broad-Based Growth
Ogebe explained that Nigeria's growth pattern remains narrow, primarily driven by sectors like financial services, ICT, and occasionally oil and gas. He pointed out that critical sectors such as agriculture, manufacturing, trade, and construction are underperforming. "In 2025, manufacturing and agriculture grew by just 1.5 percent and 2.2 percent respectively. That is far too low, especially for sectors with high job-creation potential," he noted.
He underscored that broad-based growth across productive sectors is essential for job creation, improved livelihoods, and poverty reduction. "What we are saying is that the growth gap must be closed—from 3.9 percent to over six percent—and the growth must be inclusive, cutting across sectors with high employment potential," Ogebe added.
Addressing Structural Weaknesses and Policy Stability
Ogebe also highlighted the necessity to tackle structural weaknesses in the economy, particularly fiscal stress, noting that debt servicing has increased by about 16.7 percent. He emphasized that fiscal stability is critical for sustaining growth and consolidating macroeconomic gains. Furthermore, he cautioned against policy reversals, especially calls to reintroduce fuel subsidies in response to rising global oil prices driven by tensions in the Middle East, warning that such moves could undermine economic progress.
