Economic experts at a colloquium in Abuja have urged Nigeria to urgently reform its power sector, strengthen capital markets, and overhaul public institutions to transition from widespread poverty to sustainable prosperity. Professor Uche Nwaleke highlighted low electricity generation and weak market performance as major constraints on growth. Dr Paul Alaje described poverty as a systemic issue rooted in lack of opportunity and weak institutions.
At the Paul Alaje colloquium in Abuja over the weekend, experts emphasized the need for deep structural changes to address Nigeria's persistent poverty.
Professor Uche Nwaleke, a capital markets expert at Nasarawa State University, pointed to Nigeria's electricity generation, which stands below 5,000 megawatts, as a critical barrier to economic growth. In comparison, South Africa generates about 40,000 megawatts for its population of 65 million people. Nwaleke also criticized the country's equity market capitalization, which remains under 40 percent of GDP—far below South Africa's nearly $1 trillion market, exceeding three times its GDP. As of last Friday, Nigeria's market capitalization was N93 billion, a level Nwaleke called 'far too low for an economy of its size.'
Despite these challenges, Nwaleke acknowledged efforts by the current administration, including exchange rate reforms, revenue improvements, and tax reforms to tackle macroeconomic distortions. He stressed the importance of improving government spending in health, education, and social services to build human capital, noting that GDP growth alone is insufficient without direct investments in people.
'Education is an asset. Not just important, but central to national transformation,' Nwaleke said.
Dr Paul Alaje, the colloquium's host, expanded on poverty beyond the $2.15 per day threshold, framing it as a systemic condition driven by lack of opportunity, weak institutions, and a cycle of low income, low savings, low investment, and low productivity.
'Potential is not poverty and resources are not development. Poverty persists when people lack the means and systems to realise their potential,' Alaje stated. He cited China and South Korea as models that escaped poverty through state-led development, heavy investments in skills and education, and robust institutional frameworks.
These insights underscore the urgency for Nigeria to prioritize institutional reforms to unlock its potential.