World Bank: Nigeria Remains Africa’s Largest Economy.

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The World Bank’s Country Director for Nigeria, Dr. Ndiame Diop, has reaffirmed Nigeria’s position as Africa’s largest economy by Gross Domestic Product (GDP), despite the challenges faced by its private sector. Speaking at the Country Private Sector Diagnostic (CPSD) and Stakeholder Engagement in Abuja, Dr. Diop stated, “Nigeria continues to hold its position as Africa’s biggest economy,” adding that the country receives far less foreign direct investment (FDI) than its potential warrants.

Dr. Diop emphasised the importance of addressing private sector constraints to unlock Nigeria’s economic potential. “If targeted actions are taken to remove these obstacles, Nigeria’s economic potential would be significantly enhanced,” he said. The current macroeconomic reforms have created a favourable environment for such changes, with recent economic stabilisation measures enhancing investment conditions.

Dr. Diop identified four key sectors where strategic reforms could unlock massive investment and job creation:

– *Information Communication Technology (ICT) sector*: Investment opportunities worth up to $4 billion could be realised, potentially creating over 200,000 jobs.

– *Agribusiness*: Reforms could unlock $6 billion in investment and generate over 275,000 jobs.

– *Solar photovoltaic (PV) industry*: The sector holds potential for $8.5 billion in investment and over 129,000 jobs.

– *Pharmaceutical sector*: Reforms could attract $1.6 billion and create over 30,000 to 40,000 jobs.

Dr. Diop highlighted the need to address regulatory inconsistencies, vandalism, limited financing, and competitive access to wholesale fibre to unlock the ICT sector’s potential. He also emphasised the importance of consistency in regulatory policies to encourage private sector investment.

The Regional Director for Central Africa and Anglophone West Africa at the IFC, Dr. Dahlia Khalifa, stressed the significance of predictable regulatory policies, particularly in customs duties and revenue agency fees. “Unpredictability discourages private sector investment, as businesses rely on stable regulatory environments for strategic planning,” she said.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, commended the IFC for its support across critical sectors. He highlighted key financing partnerships and acknowledged IFC’s commitment to supporting Nigeria’s economic growth. Edun stated that President Bola Tinubu’s administration has undertaken bold reforms, removing wasteful subsidies, improving security, and boosting oil production and revenue.

The minister reassured that the administration is committed to addressing the cost-of-living crisis through increased food production and affordability measures. He acknowledged short-term inflationary pressures but assured that targeted interventions, including direct cash transfers to vulnerable citizens, will help mitigate the impact. He insisted that the government remains determined to leverage technology to ensure swift, biometric-enabled assistance to those in need.

“The administration is committed to creating an enabling environment for businesses to thrive, and we believe that our partnership with the IFC and the World Bank will play a critical role in achieving this goal,” Edun said.

Dr. Diop reiterated the World Bank’s commitment to supporting Nigeria’s economic growth and development. “We will continue to work closely with the government and private sector stakeholders to identify and address the key constraints to economic growth and job creation,” he said.

The Country Private Sector Diagnostic (CPSD) report, which is expected to be released in the coming weeks, will provide a comprehensive analysis of the private sector landscape in Nigeria and identify key areas for reform and investment.

The report’s findings and recommendations are expected to inform the government’s policy decisions and investment strategies, as well as guide the private sector’s investment and growth plans.

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