Lagos, Nigeria, October 20, 2020 — A new report from IFC and the World Bank focused on the health of Nigeria’s economy finds that a broader private sector-led growth strategy could help Nigeria realize its immense potential by attracting more investment and creating millions of quality jobs for its growing population.
The report, the Nigeria Country Private Sector Diagnostic (CPSD), calls for placing greater emphasis on addressing infrastructure deficiencies and investment policies and identifies agribusiness, manufacturing, and digital entrepreneurship, among others, as high potential sectors that can speed economic growth and job creation in Africa’s largest economy.
Launched as Nigeria works to recover from the impacts of COVID-19, the report examines how Nigeria’s vibrant private sector, dominated by smaller businesses, will require improved policy frameworks and reforms to support sectors beyond oil, which contributes nearly 90 percent of the country’s export earnings.
The report also highlights how potential investors and Nigeria’s private enterprises can best benefit from the country’s extensive agricultural and mineral resources, its young and entrepreneurial labor force, and its strategic position in Africa with market access to other member countries of the Economic Community of West African States (ECOWAS).
Eme Essien Lore, IFC Country Manager for Nigeria, said, “Nigeria’s private sector is among the largest in Africa and plays a critical role providing goods, services, and quality jobs to the country’s growing population. Addressing the challenges holding back Nigeria’s private sector—challenges deepened by the COVID-19 pandemic—will be critical to the country’s goal of lifting 100 million Nigerians out of poverty by 2030. Through the CPSD, IFC, and the World Bank have identified policy actions and interventions that can help unlock investment and jobs.”
According to the report, targeted investments in agribusiness could directly benefit Nigeria’s poorest households and help improve food security. Reforms in manufacturing could support and facilitate investments in the sector, boosting quality local production and exports. The benefits to Nigeria of fully harnessing the digital economy are significant and would likely accelerate the pace and inclusiveness of economic activity in the country.
Shubham Chaudhuri, World Bank Country Director for Nigeria, said, “Nigeria’s Private Sector Diagnostic provides a road map to support the government in undertaking reforms that will help increase private sector investment and diversify the country’s oil-dependent economy.”
IFC and the World Bank have also published a COVID-19 Rapid Assessment alongside the Nigeria CPSD. The rapid assessment provides insights for stakeholders on accelerating Nigeria’s recovery from the impact of the pandemic.
About the Country Private Sector Diagnostic (CPSD)
The World Bank Group’s new Country Private Sector Diagnostics aim to identify sectors where private sector solutions can create or expand markets and make substantial contributions to development impact. The diagnostics uses a structured approach to analyze key sectors with unrealized private sector potential in each country, select several sectors for deeper analysis, and make recommendations for action. The sector analyses, conducted with significant input from teams across the World Bank Group and from external partners, provide valuable information on the challenges and opportunities to better leverage the private sector to achieve developmental objectives. The CPSD aligns with the World Bank Group’s Maximizing Finance for Development (MFD) approach, which looks to private sector solutions to reach the 2030 Sustainable Development Goals.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries . In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
About the World Bank Group
The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org , www.miga.org , and www.ifc.org
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