Key actions cited include Nigeria’s recent economic stabilization measures, particularly adjustments in the exchange rate market and improved access to foreign exchange, which have already enhanced investment conditions
Nigeria Remains Africa’s Largest Economy – World Bank
Dr. Ndiame Diop, the World Bank’s Country Director for Nigeria, has confirmed that Nigeria continues to be the largest economy in Africa based on Gross Domestic Product (GDP), despite the challenges faced by its private sector.
During the Country Private Sector Diagnostic (CPSD) and Stakeholder Engagement event in Abuja on Thursday, Dr. Diop noted that Nigeria attracts significantly less Foreign Direct Investment (FDI) than its potential allows—especially when compared to countries like Indonesia and South Africa. Nevertheless, the country maintains its position as Africa’s largest economy.
Dr. Diop mentioned that the upcoming CPSD report, set to be released in the coming weeks, will highlight the effects of private sector constraints on economic growth. He emphasized that if targeted actions are implemented to eliminate these obstacles, Nigeria’s economic potential could be greatly increased.
He explained that current macroeconomic reforms have fostered a favorable environment for these changes. Key actions he cited include Nigeria’s recent economic stabilization measures, particularly adjustments in the exchange rate market and improved access to foreign exchange, which have already enhanced investment conditions.
Dr. Diop identified four key sectors where strategic reforms could unlock significant investment and job creation. In the Information and Communication Technology (ICT) sector, for instance, investment opportunities worth up to $4 billion could potentially create more than 200,000 jobs. He also indicated that reforms in agribusiness could unlock $6 billion in investments and generate over 275,000 jobs.
The solar photovoltaic (PV) industry, according to him, holds the potential for $8.5 billion in investment and more than 129,000 jobs while the pharmaceutical sector could attract $1.6 billion and create more than 30,000 to 40,000 jobs.
For the ICT sector, he identified the high, unpredictable, and inconsistent right-of-way fees, levies and informal charges—comprising 30 to 70 percent of broadband rollout costs—as a major barrier.
Addressing these regulatory inconsistencies, he argued, would be a game-changer for broadband expansion.
He acknowledged that the National Economic Council has recognised this issue and that progress is being made through a World Bank-supported initiative. Read More
