“According to the National Bureau of Statistics, the economy is dependent on oil and therefore vulnerable to external shocks, and non-oil sectors such as agriculture and manufacturing remain underdeveloped.”
As Nigeria celebrates 64 years of independence, its status as Africa’s largest economy stands in stark contrast to the reality on the ground. With a population of more than 220 million people and vast natural resources, this country should be a regional leader in prosperity and stability. However, there remains a significant gap between Nigeria’s potential and its current trajectory. The celebratory mood is tempered by persistent challenges such as economic instability, insecurity and poor governance. Despite being endowed with vast natural resources, Nigeria has failed to translate these assets into widespread development.
The country’s dependence on oil exports has long been its Achilles heel. For decades, successive governments have promised to diversify the economy, but progress has been minimal. Currently, more than 133 million Nigerians, more than half of the population, are classified as poor in multiple dimensions, and millions face food insecurity. According to the National Bureau of Statistics, the economy’s dependence on oil makes it vulnerable to external shocks, while non-oil sectors such as agriculture and manufacturing remain underdeveloped.
This economic vulnerability is further exacerbated by inflationary pressures. Nigeria’s headline inflation rate slowed to 32.15% in August 2024, but food inflation, which affects the most vulnerable, remained elevated at 37.52%. The government’s inability to stabilize the prices of essential goods such as rice and bread highlights serious structural problems that must be addressed if Nigeria is to achieve sustainable growth. Failure to control inflation risks worsening social unrest, as seen in recent worker strikes and protests.
Nigeria’s economy’s overdependence on oil remains a significant constraint. Although oil revenues have stimulated government spending, they have not improved the living conditions of most people. Nigeria urgently needs to accelerate efforts to diversify its economic base. Agriculture, technology and manufacturing have the potential to absorb millions of unemployed young people and reduce the country’s vulnerability to oil price fluctuations.
However, successful diversification requires structural reforms. The administration should adopt a more targeted industrial policy that encourages investment in value-added sectors. Nigeria’s young and dynamic population is well-positioned to drive a technological revolution, but this requires prioritizing education and skills development as well as improving the country’s precarious energy infrastructure. there is.
One of the most pressing obstacles to economic recovery is the deterioration of security. Boko Haram insurgency, banditry, and kidnappings continue to destabilize the country, particularly in the north. The economic impact has been severe, with businesses reluctant to invest, agricultural production disrupted and millions of people displaced. According to SBM Intelligence, more than 11,000 people lost their lives to rebel attacks between 2018 and 2024.
To restore investor confidence and protect economic activity, the administration must develop a coherent, intelligence-driven security strategy. This will require stronger collaboration between the military and police, as well as community-based efforts to address the root causes of violence. Without security, the prospects for Nigeria’s long-term economic recovery are bleak.
The current state of Nigeria’s education and health systems represents another significant challenge. This country has one of the highest out-of-school populations in the world, with 17.81 million children not attending school. This educational deficit has long-term implications for a country’s competitiveness and human capital development. Similarly, health infrastructure remains underfunded and access to quality health services is limited. Widespread medical tourism, where wealthy Nigerians seek treatment abroad, is a sign of Nigeria’s failure to provide adequate care at home.
Revitalizing these sectors should be a top priority. Governments need to increase public investment in education and health, not only to improve immediate outcomes but also to prepare Nigeria’s workforce for a globalized economy. Without a healthy and educated population, this country cannot compete on the international stage.
Despite these challenges, Nigeria holds significant economic potential. The burgeoning technology sector, led by companies like Flutterwave, highlights the opportunities available to a country with a large entrepreneurial youth population. But to realize this potential, governments must adopt a more pragmatic approach to economic management. Immediate reforms should focus on diversifying income sources, strengthening public service delivery, and ensuring security.
The administration’s ability to implement these reforms will determine whether Nigeria ultimately fulfills its promise of independence. For too long, short-term political interests have overshadowed long-term development goals. It’s time for a reset. Prioritize inclusive growth, sustainable development and stability over short-term profits.
Nigeria’s success or failure in the coming years will not only shape the future of its people, but will also have an impact on the wider African region. As the country celebrates 64 years of independence, the need for change has never been clearer.
