‘Nigeria’s Economic Growth Undermined by Persistent Poverty’

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, according to World Bank records in 2025. 

Oye, who made this known recently at the Annual Business Lecture/Dinner, Lagos Country Club, said this paradox raises 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. 

Oye noted that 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, and described it as, “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. 

Reacting to government’s response, Oye said monetary policy interventions by the Central Bank of Nigeria, while well-intentioned, have resulted in high interest rates that exacerbate cost-push inflation and limit private sector growth. 

Oye, who is also Chairman, Alliance for Economic Research and Ethics, identified the causes of Nigeria’s inflationary climate and noted that beyond the primary inflation types, several structural and governance-related factors contribute to Nigeria’s current inflationary pressures.

These include government deficit financing; that is over-borrowing and excessive expenses; inadequate infrastructure, which is poor power and transport systems; over regulation that gives rise to complications from multiple agencies.


There are also coordination failures, including misalignment between fiscal and monetary policies; dependence on external advice: that is, over reliance on IMF/World Bank prescriptions. 

Oye observed other factors which include knowledge vs wisdom, which he explained as lack of thoughtful application of knowledge in policy making; then corruption, which is detrimental to economic progress.

He said that incompetence and quota system hinders effective governance. Insecurity in the country disrupts the supply chains and deters investment, observing that government agencies seem to compete with the private sector instead of enabling the private sector to grow.

On the solution to these problems, Oye suggested comprehensive strategy, saying that combining disciplined fiscal policies with necessary structural reforms is essential to lower inflation rates and enhance Nigeria’s competitiveness.

Urged that government should attract Foreign Direct Investment (FDI), encourage inclusive growth to uplift the population from poverty.