President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has raised serious concerns over the state of Nigeria’s economy, warning that the country’s current growth model is failing and unsustainable.
Delivering a keynote address titled “Reimagining Nigeria by 2050” at the 20th Anniversary Dinner of Chapel Hill Denham in Lagos, Adesina painted a grim picture of the nation’s economic trajectory, citing a sharp drop in GDP per capita from $1,847 in 1960 to $824 in 2024.
He noted that while Nigeria saw an increase to $2,120 by 2010, that progress has since reversed due to poor economic management, policy inconsistency, fiscal indiscipline, and excessive reliance on crude oil.
“Nigeria is facing a crisis of growth,” Adesina declared. “Our current path will not deliver the kind of prosperity our people deserve.”
The former Nigerian agriculture minister identified several structural weaknesses holding the country back, including a lack of investment in infrastructure, an underdeveloped industrial base, persistent inflation, high unemployment, and weak institutions.
Comparing Nigeria to South Korea, he underscored the missed opportunities. In 1960, South Korea’s GDP per capita stood at $158—far behind Nigeria’s. Today, South Korea has surged to $36,132, 43 times higher than Nigeria’s current figure. He attributed that success to a strong savings culture, industrial growth, and long-term economic planning.
Adesina pointed out that South Korea’s pension fund is currently valued at $830 billion, while Nigeria’s is a mere $13 billion—highlighting a major gap in financial resilience and capacity for long-term investment.
He called for a complete overhaul of Nigeria’s approach to development, urging a shift from managing poverty to creating wealth. “We must reset our ambition and unleash the power of the private sector,” he said.
To reposition Nigeria for the future, Adesina outlined five strategic priorities:
1. Universal Access to Electricity – He described reliable power as fundamental to growth and called for cost-reflective tariffs, transparent power agreements, and a major role for private capital.
2. World-Class Infrastructure – He emphasized the need to improve roads, ports, digital networks, and essential services to make Nigeria competitive in the global economy.
3. Industrial Manufacturing – Adesina advocated for a strong manufacturing base, drawing inspiration from Asian economies that turned industrialization into prosperity.
4. Strategic Use of Pension and Sovereign Funds – He proposed deploying these funds into infrastructure and productive sectors through innovative financial instruments.
5. Mindset Shift and Strong Governance – He urged leaders to embrace long-term planning, accountability, and a results-oriented governance model.
Adesina also encouraged Nigeria to participate in the AfDB and World Bank’s “Mission 300” initiative, which seeks to accelerate energy access across Africa.
“We can no longer afford to tinker at the edges,” he concluded. “Nigeria must act boldly, or risk falling further behind in a rapidly changing world.”
The AfDB president’s remarks come amid growing domestic and international concern over Nigeria’s economic performance, as inflation, debt, and unemployment continue to rise.
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