Abuja, Nigeria – The World Bank’s Country Director for Nigeria, Dr. Ndiame Diop, has reaffirmed that Nigeria remains Africa’s largest economy by Gross Domestic Product (GDP) despite facing challenges in its private sector.
Speaking at the Country Private Sector Diagnostic (CPSD) and Stakeholder Engagement in Abuja on Thursday, Dr. Diop noted that while Nigeria lags behind countries like Indonesia and South Africa in Foreign Direct Investment (FDI), it continues to hold its top economic position on the continent.
He revealed that the upcoming CPSD report will highlight key constraints affecting private sector growth and propose solutions to unlock Nigeria’s economic potential. He emphasized that recent macroeconomic reforms, particularly adjustments in the exchange rate market and improved access to foreign exchange, have created a more favorable investment environment.
Key Sectors for Investment and Job Creation
Dr. Diop outlined four major sectors where strategic reforms could attract substantial investments and generate thousands of jobs:
Information and Communication Technology (ICT) – With potential investments of $4 billion, this sector could create over 200,000 jobs. However, high and inconsistent right-of-way fees, levies, and informal charges—which make up 30–70% of broadband rollout costs—pose significant barriers. Addressing these regulatory issues, he stated, would drive broadband expansion.
Agribusiness – Strategic reforms in this sector could unlock $6 billion in investments and create over 275,000 jobs.
Solar Photovoltaic (PV) Industry – With an investment potential of $8.5 billion, this sector could generate more than 129,000 jobs.
Pharmaceutical Sector – This industry could attract $1.6 billion in investments and create between 30,000 to 40,000 jobs.
Dr. Diop commended Nigeria’s National Economic Council for recognizing these investment barriers and working with the World Bank on initiatives to address them. He stressed that targeted regulatory reforms would be a game-changer for economic growth, job creation, and increased foreign investment in the country.
