How Nigeria Can Achieve Trillion-dollar Economy — AfDB

The New Diplomat
Writer
Nigeria’s Policy Efforts Structured To Meet SDG 13 On Climate Action –AfDB

Ad

Tinubu Departs Brazil for Nigeria After State Visit

By Abiola Olawale President Bola Ahmed Tinubu has concluded a three-day state visit to Brazil, departing the country for Abuja on Wednesday, August 27, 2025. The New Diplomat reports that the presidential jet took off from Brasília International Airport Air Force Base, with a ceremonial send-off attended by Brazil’s Secretary for Africa and the Middle…

President’s son jailed 6 years in fraud case as power tussle soars in Equatorial Guinea

• Two brothers at war over who succeeds Nguema Mbasogo By Obinna Uballa An Equatorial Guinea court has sentenced Ruslan Obiang Nsue, son of President Teodoro Obiang Nguema Mbasogo, to six years in prison for illegally selling a plane belonging to the state airline, Ceiba Intercontinental, a case analysts say reflects growing rivalry within the…

Details: Why Roosevelt Ogbonna Quit Access HoldCo board

• He remains Bank MD, Says Access By Obinna Uballa Access Holdings Plc has explained that Mr. Roosevelt Ogbonna, Managing Director and Chief Executive Officer of Access Bank Plc, resigned from the Board of the HoldCo to comply with regulatory guidelines issued by the Central Bank of Nigeria (CBN). The company, in a statement signed…

Ad

By Kolawole Ojebisi

The African Development Bank has highlighted ways by which Nigeria can achieve long-term growth and become a trillion-dollar economy.

AfDB stated that Nigeria must harness its financial, human, and natural resources more effectively, stressing that this is only achievable through better governance, investment and planning.

This is contained in a statement by the AfDB on Saturday, revealing the crux of the 2025 Nigeria Country Focus Report, unveiled on Thursday in Abuja titled, “Making Nigeria’s Capital Work Better for Its Development.”

“Nigeria’s capital, its money, its people, and its natural resources can and must work harder and smarter for national development. This report offers a roadmap to unlock that potential through fiscal reforms, governance improvements, and innovative financing.” AfDB’s Country Manager for Nigeria, Lamin Barrow, said while speaking at the report unveiling.

The CFR report, however, lamented the country’s management of its human capital, stressing that Nigeria scores just 36 per cent on the Human Capital Index, a performance it added it’s well below the Sub-Saharan average.

“Underinvestment in health and education is limiting productivity.

“Current public spending 7.9 per cent for education and 5.3 per cent for health is too low for a country with a young and rapidly growing population,” Barrow added.

Also cited as a major constraint on development financing is Nigeria’s tax-to-GDP ratio of 13 person cent, which according to the report is one of the lowest in West Africa.

“Despite recent reforms, revenue mobilisation is hindered by a large informal sector, weak compliance, and institutional inefficiencies,” the report noted.

Suggesting a way forward, the AfDB recommended expanding the tax base, improving compliance, and addressing fiscal leakages to strengthen public investment in health, education, and infrastructure.

Chief Economist, Kevin Urama, said, “Fragmented oversight and governance gaps have eroded public trust and discouraged investment.
“Institutional reform and rule of law are non-negotiable if Nigeria is to unlock sustainable financing.”

Despite the economic challenges besetting the country informed by bold reforms such as fuel subsidy removal, exchange rate unification, and tax policy shifts CFR insisted that Nigeria was at a turning point.

“With the right policies and strong implementation, Nigeria can not only close its financing gap but build a more resilient, inclusive, and sustainable economy,” said Urama.

The report noted that Nigeria could chart a course towards economic prosperity through investments in green finance, sustainable agriculture, and the emerging carbon market, estimated to yield up to $2 billion in potential revenue.

“Blended finance, diaspora bonds, and fintech are helping to bridge the gap,” the CFR stated.

Ad

X whatsapp