The World Bank’s projection of a surge in Nigeria’s poverty rate to 56% by 2027 has sparked alarm and calls for immediate action from the Organized Private Sector of Nigeria (OPSN). The OPSN, through its chairman, Dele Oye, who also serves as the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has urged the Federal Government to implement targeted economic stimulus packages to mitigate the looming crisis. The World Bank’s grim forecast attributes the escalating poverty to sluggish economic growth, persistent high inflation, and widening disparities between rural and urban areas. These factors, combined with existing challenges like insecurity and a growing debt burden, paint a concerning picture for Africa’s most populous nation. The OPSN’s call for action emphasizes the urgency of addressing these issues to prevent further economic hardship for millions of Nigerians.
The OPSN’s proposed interventions focus on several key areas. First and foremost, they advocate for direct support to vulnerable populations through cash transfers, food assistance programs, and targeted support for small and medium enterprises (SMEs) to stimulate job creation. Critically, they highlight the need for robust monitoring and evaluation of these programs to ensure transparency and prevent corruption, acknowledging that existing support systems often suffer from inefficiency and lack of proper structure. The OPSN underscores the importance of agriculture, recognizing its significance as a primary source of livelihood for many Nigerians. They recommend targeted investments in the agricultural sector, including subsidizing inputs, providing accessible long-term credit, and expanding training programs to enhance food security and create sustainable livelihoods.
Focusing on youth empowerment and entrepreneurship, the OPSN calls for expanded access to microfinance for women and youth, recognizing the need to combat the “Japa Syndrome” (brain drain) and stimulate local businesses. They suggest creating youth-targeted capital funds and facilitating favorable lending conditions to empower young entrepreneurs and create economic opportunities within the country. Recognizing the critical role of education and skills development in addressing unemployment, the OPSN urges the government to strengthen partnerships with organizations like the German government and expand vocational training programs nationwide in collaboration with NACCIMA. These initiatives aim to equip Nigerians with the skills necessary to participate actively in the economy and contribute to its growth.
Addressing the fiscal environment, the OPSN cautions against recent tax policies that they believe could deter much-needed investments. Specifically, they point to levies imposed on international tech companies like WhatsApp and Meta, as well as turnover taxes by regulatory agencies, as measures that could hinder business growth and investor confidence. They urge a careful review of these policies to ensure they promote rather than inhibit economic activity. Furthermore, the OPSN advocates for boosting infrastructure, particularly in rural areas, coupled with tax incentives for businesses investing in underserved regions. Expanding social safety nets, including unemployment benefits and healthcare, are also recommended to mitigate the impact of poverty and create a more resilient society.
Recognizing the interconnectedness of security and economic stability, the OPSN emphasizes the need to address insecurity, particularly in rural areas, to protect livelihoods and agricultural production. Insecurity directly contributes to food insecurity and poverty, highlighting the urgent need for the government to prioritize peace and security. On the trade front, the OPSN echoes the call for Nigeria to leverage the African Continental Free Trade Area (AfCFTA) to expand intra-African trade and maximize opportunities for economic growth. They emphasize the need for Nigeria to move beyond exporting raw materials and focus on local processing to build a more resilient and inclusive economy, citing the concerns of prominent figures like Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, and Dr. Akinwumi Adesina, President of the African Development Bank.
Finally, the OPSN acknowledges the growing concern of Nigeria’s mounting debt burden, which reached N144.67 trillion as of December 2024, a significant increase from the previous year. They stress the urgent need for reforms to address this issue and create a sustainable fiscal environment. Highlighting the Finance Minister’s observation that Nigeria requires a minimum annual growth rate of 7% to effectively reduce poverty, the OPSN urges the government to act decisively on these recommendations. They express their commitment to collaborating with all stakeholders to foster sustainable economic growth and improve the livelihoods of all Nigerians. The OPSN’s comprehensive recommendations offer a roadmap for tackling the multifaceted challenges facing Nigeria’s economy and mitigating the projected rise in poverty. The call for immediate and targeted action underscores the urgency of the situation and the need for a collaborative approach involving the government, private sector, and international partners.
