NESG to FG: Deepen Reforms to Sustain Economic Gains

Dike Onwuamaeze

The Nigerian Economic Summit Group (NESG) has called on the federal government to deliberately institutionalise ongoing economic reforms, deepen structural transformation and strengthen productive capacity in order to avoid reversing Nigeria’s current macroeconomic gains.

The NESG stated this in its “Economic and PolicyR eview Journal: H1’ 2026” titled “Consolidating Economic Stabilisation Gains: Medium-Term Policy Priorities,” which was released yesterday.

The publication also stated that rising debt service obligations have continued to heighten concerns over Nigeria’s medium-term public debt sustainability. 

It pointed out that Nigeria’s public debt increased from N144.7 trillion in 2024 to N159.3 trillion in 2025, which reflected continued reliance on borrowing to finance fiscal deficits.

“This deterioration is further reflected in the NESG Debt Burden Index, which rose from 70.9 points in 2024 to 75.9 points in 2025, signalling elevated refinancing risks and increasing fiscal vulnerability.

NESG said: “Nigeria’s macroeconomic gains remain fragile and susceptible to reversal, underscoring an important reality: macroeconomic stabilisation is a necessary foundation for recovery, but it is not sufficient to deliver sustained and inclusive economic transformation.

“Without deliberate efforts to institutionalise reforms, deepen structural transformation, strengthen productive capacity, and improve governance, the gains achieved thus far risk proving temporary.”

It stated further that the consolidation represents the medium-term phase of economic management that would follow macroeconomic stabilisation.

It pointed out that while the stabilisation phase focuses on restoring macroeconomic balance, correcting structural distortions, rebuilding policy credibility, and restoring investor confidence, the consolidation phase should be concerned with institutionalising these gains through sustained macroeconomic discipline, productivity-enhancing investments, stronger institutions, and structural transformation.

“Its primary objective is to convert short-term macroeconomic improvements into durable economic resilience, higher productivity, and sustained, inclusive development over the medium term,” the NESG added.

It emphasised the importance of its “Economic Transformation Roadmap” that seek to translate emerging macroeconomic stability into sustained and inclusive economic growth by strengthening institutions, unlocking private investment, raising productivity, and delivering tangible improvements in citizens’ welfare.”

It noted that: “The optimal consolidation pathway represents the most desirable trajectory for Nigeria’s economic transformation, through which recent stabilisation gains are institutionalised, structural reforms are deepened, productive investments are expanded, and economic growth becomes more resilient, inclusive, and sustainable.

“Achieving this transition requires coordinated and sustained implementation across four mutually reinforcing pillars: macroeconomic stability, strong institutions, structural transformation, and social inclusion.

“Each pillar is supported by a set of measurable policy targets that collectively define the optimal consolidation pathway.”

The NESG made policy recommendations that would strengthen the consolidation process, which included preserving macroeconomic stability by rebuilding external reserves, strengthening fiscal rules, broadening domestic revenue mobilisation, and implementing a credible medium-term debt management strategy to safeguard fiscal sustainability.

It also recommended deepening institutional reforms by improving regulatory quality, strengthening fiscal governance, enhancing public sector effectiveness, and reducing policy uncertainty to improve the business environment and reinforce investor confidence.

It advised government to accelerate structural transformation through targeted investments in industrial parks, reliable electricity supply, trade logistics, digital infrastructure, and affordable catalytic financing to stimulate private investment, productivity, and job creation.

It said: “Expand strategic infrastructure investment by leveraging public–private partnerships, blended finance, and innovative financing mechanisms to close critical gaps in power, transport, logistics, and other enabling infrastructure.

“Promote inclusive growth by expanding the national social register, ring-fencing reform savings for well-targeted social interventions, strengthening social protection systems, and increasing investments in education, healthcare, and skills development to enhance human capital.”