Former Kaduna State Governor, Nasir El-Rufai, has said Nigeria’s weak economic performance is not due to a lack of talent, funding, or ideas, but rather how the country deploys its most capable individuals.
In a Facebook post on Wednesday, he argued that the real challenge lies in where top talent is directed and the incentives that shape their choices.
El-Rufai said highly skilled Nigerians often gravitate toward activities that offer the fastest financial rewards, especially where small differences in ability can lead to large gains.
He noted that people generally act based on incentives, stressing that Nigeria’s current system tends to favour rent-seeking over productive economic activity.
He cited economic indicators, saying Nigeria’s GDP growth was about 4.1 per cent in 2024, while GDP per capita stood at roughly $1,084, keeping the country within the low-income bracket. He also noted that about 93 per cent of the workforce is in informal employment, while the tax-to-GDP ratio is just 8.2 per cent.
According to him, these figures reflect an economy where expanding businesses is risky, visibility can attract exploitation, and long-term investment struggles against short-term gains.
El-Rufai added that diverting skilled individuals away from productive sectors reduces entrepreneurial quality, slows innovation, and weakens long-term economic growth.
He also pointed to structural challenges such as unstable power supply, delays at ports, and limited formal employment opportunities as barriers to business expansion.
However, he acknowledged growth potential in non-oil sectors such as cocoa, fertiliser, cashew, and processed agricultural goods, noting that Nigerian firms can compete when incentives are properly aligned.
Outlining reforms, he called for reducing discretionary government control, improving predictable and digital regulation, strengthening property rights, and supporting business expansion.
He concluded that Nigeria’s progress depends on rewarding productivity over rent-seeking, insisting that sustainable growth will follow if the system is restructured to support producers.