• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Friday, August 8, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Shrinking Industrial Base, Dominant Informal Sector Undermine Economic Growth, NESG Warns

by Mark Itsibor
20 hours ago
in Business
Shrinking Industrial Base
Share on WhatsAppShare on FacebookShare on XTelegram

The Nigerian Economic Summit Group (NESG) has raised serious concerns over the country’s weakening industrial capacity and the overwhelming dominance of the informal sector, warning that these structural deficiencies are threatening Nigeria’s long-term economic growth and development.

Advertisement

Presenting findings from a new research study on Wednesday, the Group disclosed that despite several promises and policy pronouncements by successive administrations on industrialisation, Nigeria’s economy remains informal, mainly posing significant challenges to revenue mobilisation, effective policy planning, and sustainable development.

According to the report, the informal sector currently accounts for 54.4 per cent of the economy, while the formal sector lags behind at 45.6 per cent. Speakers at the online event said this imbalance makes it difficult for the government to adequately gather data, collect taxes efficiently, and implement broad-based fiscal planning strategies.

The NESG’s analysis also revealed that Nigeria’s industrial base continues to contract, with real Gross Domestic Product (RGDP) declining over the last six years. Specifically, the country’s RGDP dropped from N43.1 billion in 2019 to N35.5 billion by 2024, which the Group described as alarming.

“This trend indicates a continuous erosion of productive capacity within key sectors, particularly industry, which has long been considered critical to economic diversification and resilience,” the report stated in a presentation titled “X-rqying the Data Insights from the Rebased GDP.”

RELATED

Kano Govt Renames KUST After Dangote

Dangote Sees Growth In Export Of Refined Products With $1.35Bn Afreximbank’s Deal

15 hours ago
Egbin Power Advances Energy Transition Drive, Appoint New CEO

‘Egbin Power Plc, Ikeja Electric, FIPL Not In Receivership’

16 hours ago

Speaking during the presentation, the NESG senior economist and research team lead,

Dr. Faith Iyoha noted that while the services sector has overtaken agriculture and industry in contributing to GDP, this growth offers limited inclusive benefits due to its concentration in low-productivity, informal enterprises.

The report also highlighted the impact of naira depreciation on household welfare. Dr. Iyoha explained that although recent devaluation measures have helped stabilise the foreign exchange market, they have also significantly eroded consumers’ purchasing power.

“Currency depreciation and falling purchasing power have dampened welfare gains,” she said, noting that many Nigerians struggle to afford essential goods and services.

Supporting this observation, the research showed that Nigeria’s per capita GDP has plummeted from $2,777 in 2019 to $1,036 in 2024, reflecting a sharp decline in individual economic well-being and widening poverty levels.

Ekundayo Mesagan said the rebased GDP will give Nigeria a more robust, diversified GDP going forward, and help her to target the sectors that will ensure inclusive growth and job creation. “It will give us sector specifics to invest in,” he states. Meagan stated that with the rebasing, the government can now be more focused on critical micro segments of society. “It’s going to improve the fiscal space and there will be sector data availability,” he said.

In response to the challenges, NESG is urging policymakers to redirect attention toward high-impact, productivity-driven sectors that can foster inclusive growth and job creation. The Group stressed that structural transformation is urgently required to shift the economy away from low-productivity, informal activities toward more formalised, industrialised, and innovation-led growth.

“Nigeria’s economy is structurally concentrated in low-productivity and highly informal sectors,” NESG noted, warning that failure to address these bottlenecks could stall the country’s aspirations for sustainable growth and development.

The economic think-tank said industrial, trade and investment policies need to be informal sector centric, especially because of MSMEs.

On the other hand, it said agriculture growth at 1.7 per cent implies food prices will remain elevated on the back of demand pressure.

NESG said the increase in GDP per capita clouds the level of inequality and poverty that exists in real terms. “To reflect true welfare dynamics there is need for an updated household survey data and complementary metrics beyond GDP,” it stated, adding that productivity remains structurally weak while highlighting the need for sector-specific interventions—skills, energy access, mechanisation, and innovation.

“Exposes weak social coverage with millions of Nigerians still lacking health insurance, access to quality education and unemployment benefit. State of emergency response in the industrial sector. National Industrial Policy is essential to ensure coordinated and strategic industrial interventions,” NESG said in the research document.


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel




Tags: Nigerian Economic Summit Group (NESG)
SendShareTweetShare
Previous Post

Bulls Extend Run, Equities Cap Hits N92trn On Renewed Investor Optimism

Next Post

Drop In Telecom’s FDI To $80.78m Threatens Nigeria’s Digital Goals

Mark Itsibor

Mark Itsibor

Mark Itsibor is a journalist and communication specialist with 10 years of experience, He is currently Chief Correspondent at LEADERSHIP Media Group and writes on Finance, Economy, Politics, Crime, and Judiciary. He has a B.Sc in Political Science, Post Graduate Diploma in Journalism (Print), and B.A in Development Communication. His Twitter handle is @Itsibor_M

You May Like

Kano Govt Renames KUST After Dangote
Business

Dangote Sees Growth In Export Of Refined Products With $1.35Bn Afreximbank’s Deal

2025/08/07
Egbin Power Advances Energy Transition Drive, Appoint New CEO
Business

‘Egbin Power Plc, Ikeja Electric, FIPL Not In Receivership’

2025/08/07
NIMR Faces Power Outage Over ₦38m Debt
Business

Nigeria’s Power Market To Hit $503.67m By 2030 – Report

2025/08/07
FAAN Signs Capacity Building MoU With Dubai-based Firm
Business

Expansion Of Terminal 2 Part Of Airport Renovation – FAAN

2025/08/07
Niger/Kogi Customs Seize Car, Others Worth N755m
Business

Ahead Of Take-off, Customs Engage Importers, Operators On AEO Migration

2025/08/07
Kogi Stakeholders Task Federal Gov’t On Ending Benue Killings
Business

Aviation Workers Ask Tinubu To Cancel Airport Concessions Nationwide

2025/08/07
Leadership Conference advertisement

LATEST

BBNaija10: Danboskid, Joanna Emerge King, Queen Of Extract Beauty Pageant

Ghana’s President Appoints Acting Ministers After Helicopter Crash Claimed Cabinet Members

JUST-IN: NCAA Petitions AGF, IGP To Probe Singer KWAM 1, ValueJet Over Airport Incident

Sowore’s ‘Maltreatment’ By IGP’s Monitoring Team Shameful — Atiku

UK To Clamp Down On Dangerous Cosmetic Procedures, BBL

Supporters Claim Sowore’s Hand Broken As Activist Spends Day 2 In Police Cell

FCT Minister Reaffirms Commitment To Strengthen Health Services

13-Man AFRIMA Jury Arrives Nigeria

INEC Introduces Online Platform To Identify Registration Centres

Navy Destroys 71 Illegal Refining Sites In July

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.