Former Kaduna State Governor, Nasir El-Rufai, has attributed Nigeria’s prolonged economic struggles to the misdirection of its human capital rather than a deficiency in talent, capital, or innovation.
In a statement posted on his Facebook page on Wednesday, the ex-governor maintained that the country’s growth challenge lies in how its most skilled individuals are distributed across sectors, noting that many are drawn to ventures with quick and substantial financial returns instead of productive activities that sustain long-term development.
He explained that individuals naturally respond to prevailing incentives, arguing that the system currently favours rent-seeking pursuits over genuine enterprise, thereby weakening productivity and slowing economic progress.
Backing his position with figures, El-Rufai noted that Nigeria recorded about 4.1 per cent GDP growth in 2024, while per capita income stood at approximately $1,084, reflecting its position among lower-income economies. He added that about 93 per cent of the workforce operates within the informal sector, while the tax-to-GDP ratio remains low at 8.2 per cent.
According to him, such indicators reveal an economic environment where expansion is fraught with risks, visibility exposes businesses to undue pressures, and long-term investments struggle to compete with ventures offering immediate gains.
The former governor, who was also sighted at the Federal High Court in Kaduna for the continuation of his bail hearing, warned that the diversion of top talent from productive sectors undermines entrepreneurship, slows technological advancement, and weakens sustainable growth.
He identified structural bottlenecks such as erratic power supply, inefficiencies at the ports, and limited formal employment opportunities as key constraints discouraging large-scale production.
Despite the challenges, El-Rufai pointed to emerging opportunities in non-oil exports, including cocoa, fertiliser, cashew, and processed agricultural products, noting that Nigerian businesses can thrive when the right incentives are in place.
He advocated reforms aimed at prioritising productivity, including reducing discretionary government powers, ensuring regulatory clarity through digital systems, strengthening property rights, and creating an enabling environment for businesses to scale.
El-Rufai stressed that Nigeria’s future growth depends on building a system that rewards value creation over extraction, insisting that sustainable progress would follow once productive ventures are adequately incentivised.
