‘Nigeria’s Economic Growth Undermined by Persistent Poverty’

Stories by Chinedu Eze

The President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, has said that Nigeria’s economic growth is undermined by persistent poverty with 139 million Nigerians living below the poverty line.

He made his assertion, based on the World Bank records of 2025.

Oye, who made this known recently at the Annual Business Lecture/Dinner, Lagos Country Club, said the development would generate urgent questions about the effectiveness of current economic policies.

He said that Nigeria’s economy is wracked by two types of inflation: the demand-pull inflation and the cost-push inflation.

According to Oye, the demand-pull inflation is driven by excessive liquidity, largely due to the Nigerian public- sector deficit budgeting/spending and heavy borrowing, which leads to the phenomenon of “too much money, chasing too few goods.”

On the other hand, the cost-push inflation is caused by soaring production costs stemming from issues such as unstable exchange rates, unreliable power supply, poor infrastructure, unstable policies and excessive regulation by MDA, most of which instead of facilitating trade, have turned regulations into government revenue drive.

Then there is involution/deflation, which he described as additional concern, adding that “where unhealthy competition leads to price drops, reduced production, stagnant wages, and rising inequality.”

According to Oye, this cycle stifles economic growth, increases poverty, and creates instability.

Oye said monetary policy interventions by the Central Bank of Nigeria (CBN), while well-intentioned, have resulted in high interest rates that exacerbate cost-push inflation and limit private sector growth.