Dr. Olisa Agbakoba, a respected lawyer and former president of the Nigeria Bar Association (NBA), has warned that Nigeria’s over-centralised governance structure is preventing the country from reaching its full economic potential. Agbakoba made the statement while unveiling his report, titled ‘Governance and Economic Analysis and Forecast 2025,’ at a press conference in Lagos.
According to Agbakoba, Nigeria’s untapped resources, coupled with its excessive concentration of power at the federal level, are hindering the nation’s path to becoming a developed economy. He believes the country can achieve a thriving economy with a projected N550 trillion GDP, but only if there is a shift in the way power and resources are managed.
Agbakoba stressed, “Nigeria’s biggest problem is the over-concentration of power at the centre. If we are to achieve the N500 trillion budget we are targeting by 2026/2027, we must break this system up. We need to decentralise and empower at least eight constitutionally recognised geopolitical zones.”
Agbakoba also highlighted the importance of Nigeria tapping into its natural resources, particularly in light of the global shift towards a green economy, driven by minerals vital for technologies like electric vehicles. He pointed to North-Central Nigeria, which ranks fourth globally for critical minerals but is yet to harness its $6 trillion worth of resources.
He criticised political leaders for focusing on petty fights rather than working together to utilise the country’s vast resources, saying, “Governors are fighting for crumbs, rather than coming together to dig deep and bring out our resources.”
The legal expert called for the establishment of a Department of Innovation and Efficiency to streamline public services and improve government productivity. Agbakoba argued that such a department would help the government adopt best practices and leverage technology to improve service delivery, following a model he had previously proposed a decade ago.
He added, “The Trump administration’s model of downsizing, though controversial, provides useful insights into how Nigeria can reform its government to become more efficient.”
Agbakoba also spoke on reforms needed in Nigeria’s oil and gas sector. He pointed out that Nigeria is the only country where private entities are given oil blocks, unlike Saudi Arabia, which keeps full ownership of its resources. He suggested that Nigeria’s oil and gas wealth could be better utilised by shifting from a contract-based oil approach to one focused on national development.
“Nigeria’s oil and gas reserves present a significant opportunity for economic transformation,” Agbakoba explained. “However, the current system, which involves joint ventures and production-sharing contracts with international oil companies, has failed to turn our petroleum wealth into prosperity for our citizens.”
Agbakoba also highlighted the potential of Nigeria’s digital economy, which currently contributes 18% to the country’s GDP and generated over N1 trillion in just two years. With the right legislative frameworks and investments, Agbakoba believes this sector could boost the economy by generating up to N30 trillion annually.
“The digital economy has huge potential for both tax and non-tax revenue opportunities,” he said, urging the government to create the appropriate laws and investments to tap into this growth.
