The Organised Private Sector of Nigeria has called on the Federal Government to urgently inject targeted economic stimulus into the economy to counter the World Bank’s projection that poverty will rise to 56 per cent in Nigeria by 2027.
The World Bank raised alarm in an earlier report, warning that 104 million Nigerians, about 47 per cent of the population, were already living below the poverty line as of 2023, citing sluggish economic growth, high inflation and worsening rural-urban disparities as drivers of the trend.
The Chairman of the OPSN, Dele Oye, in a statement, raised concerns over the World Bank’s projection for Nigeria, urging the Federal Government to “implement well-structured and targeted stimulus packages focused on vulnerable populations.”
Oye, who is also the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture stated that the government needs to implement “well-structured and targeted stimulus packages focused on vulnerable populations, including cash transfers, food assistance programmes, and direct support to small and medium enterprises to stimulate job creation.”
The OPS chairman lamented that current support systems were often “insufficient and lack proper structure, leading to instances of abuse and corruption,” stressing the need for “independent monitoring and thorough evaluation across all processes.”
Oye pointed out the importance of agriculture: “Given that a significant proportion of Nigerians rely on agriculture for their livelihoods, there is a need for targeted investment in this sector.
“Subsidising inputs, providing long-term single-digit credit, and expanding training programmes can help increase food security and foster sustainable livelihoods.”
He also advocated for women and youth to get expanded access to microfinance to combat the ongoing ‘Japa Syndrome’ and stimulate local entrepreneurship.
“The government must facilitate favourable lending conditions specifically for women and youth, alongside developing youth-targeted capital funds,” the OPSN chairman remarked.
Further, Oye called for robust vocational and skills training programmes to tackle unemployment. He urged the Federal Government to “strengthen partnerships with countries like Germany and collaborate with NACCIMA to expand vocational training nationwide.”
On the fiscal environment, he warned that certain recent tax policies could deter critical investments, citing penalties imposed on tech giants like WhatsApp and its parent company Meta, and turnover taxes by regulatory agencies.
“Recent tax policy directions, such as extending tax regimes to free trade zones and imposing punitive levies on international investors, for instance, the Federal Competition and Consumer Protection Commission’s $220m fine on WhatsApp and Meta, and the Financial Reporting Council’s taxes on business turnover, risk deterring vital investment. Such measures should be carefully reviewed to promote, rather than hinder, business growth and confidence,” the OPSN chairman warned.
He added that boosting infrastructure, particularly in rural areas, introducing tax incentives for businesses investing in underserved regions, and expanding social safety nets such as unemployment benefits and healthcare were crucial to reversing rising poverty.
Oye linked insecurity, particularly in rural areas, to worsening food insecurity and poverty, calling on the government to swiftly and decisively “three peace and security” to protect livelihoods and agricultural production.
On trade, he echoed concerns raised by the era of World Trade Organisation Director-General Dr Ngozi Okonjo-Iweala on the need for Nigeria to leverage intra-African trade opportunities through the African Continental Free Trade Area.
“While much of Africa’s raw materials are exported with less than two per cent processed locally, Nigeria must reverse this trend to build a resilient and inclusive economy,” Oye submitted, citing comments from African Development Bank President, Dr Akinwumi Adesina.
Meanwhile, the NACCIMA president warned of the country’s growing debt burden, noting that Nigeria’s total public debt stood at N144.67tn as of December 2024, a 48.58 per cent increase from the previous year.
He stressed the need for urgent reforms, stating, “As the Minister for Finance and Coordinating Minister for the Economy, Mr Wale Edun, has observed, Nigeria needs a minimum annual growth rate of seven per cent to effectively reduce poverty.”
Oye charged the government to act decisively, saying, “By implementing these short-term interventions, we can help shield Nigeria’s vulnerable populations and make meaningful progress in the fight against poverty.”
He assured that NACCIMA and the OPS “stand ready to collaborate with all stakeholders to foster sustainable economic growth and improve the livelihoods of all Nigerians.”
