Business leaders and policymakers gathered at the American Business Council’s (ABC) first quarterly Economic Update for 2025 to discuss strategies for strengthening Nigeria’s economic resilience.
The event, themed “Building Economic Resilience by Fortifying the Nigerian Business Environment,” featured a keynote address by Mustafa Chike-Obi, Chairman, Fidelity Bank plc and Chairman Bank, Directors Association of Nigeria, who emphasised that economic reforms must deliver tangible benefits to Nigerians to be sustainable.
Chike-Obi questioned whether Nigeria’s current policies truly qualify as reforms, arguing that genuine reforms require clear financial restructuring, measurable outcomes, and effective communication. “For something to be a reform, it must have financial restructuring, a plan for how savings will be used, and a way to measure success,” he said. He pointed to the removal of fuel subsidies as an example, asking, “How much has Nigeria saved from subsidy removal? What is being done with those savings? Without answers, reforms remain incomplete.”
He also addressed the unification of exchange rates, acknowledging its theoretical benefits but warning that sudden policy shifts have caused hardship without clear long-term gains. “A weaker currency could encourage local production, but the abrupt changes have hurt businesses and households. The government must explain the strategy behind these decisions so Nigerians understand the sacrifices being asked of them,” he said.
Chike-Obi identified three major obstacles to Nigeria’s economic growth: a severe skills gap, inadequate infrastructure, and the high cost of capital. He noted that Nigeria loses its best talent to emigration, with 80% of top university graduates leaving the country. “We educate our brightest minds only for them to build careers abroad. We must create opportunities that make them stay,” he said. On infrastructure, he compared Nigeria’s deficiencies to trying to change a car tyre without a jack—no matter how skilled the driver, progress is impossible without the right tools.
The cost of capital, he argued, is the biggest hurdle for Nigerian businesses. “With interest rates at 40%, how can manufacturers compete globally? Countries with lower borrowing costs will always outperform us,” he said. He called for a coordinated approach to solving these challenges, suggesting that the President should take direct responsibility for economic policy rather than delegating it to individual ministries. “The President must be the chief economic coordinator, just as he is with security. A National Economic Advisor, like the National Security Advisor, could ensure policies align across ministries,” he proposed.
On trade policy, Chike-Obi criticised Nigeria’s reliance on import bans, advocating for tariffs instead. “If local bread costs ₦200 and imported bread ₦100, banning imports forces Nigerians to pay more while depriving the government of revenue. A ₦100 tariff keeps prices stable, supports local producers, and generates funds for industrial development,” he explained.
Speaking with Margaret Olele, CEO of ABC, highlighted challenges faced by foreign investors, including inconsistent regulations and overlapping policies at federal, state, and local levels. “Businesses need predictability. Frequent policy changes and conflicting regulations make long-term planning difficult,” she said. She called for stronger collaboration between the government and the private sector, stressing that policies should be designed with input from businesses to ensure mutual benefits.
Margaret Olele stressed the need for policy consistency, stating: “Frequent regulatory changes create uncertainty that deters investment.” She called for stronger private sector engagement in policymaking, adding, “When businesses are consulted early, we develop solutions that benefit both growth and governance.”
