The Organised Private Sector of Nigeria (OPSN) has called on the Federal Government to urgently introduce targeted economic stimulus packages to prevent the poverty rate from rising to 56 per cent by 2027, as projected by the World Bank.
The World Bank had earlier warned that about 104 million Nigerians, or 47 per cent of the population, were already living below the poverty line as of 2023. It blamed slow economic growth, high inflation, and widening rural-urban gaps for the worsening poverty levels.
Chairman of OPSN, Dele Oye, in a statement, urged the Federal Government to implement “well-structured and targeted stimulus packages focused on vulnerable populations.” Oye, who also serves as President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), stressed the need for cash transfers, food assistance programmes, and direct support for small and medium enterprises to stimulate job creation.
Oye lamented that current support systems are often insufficient and poorly structured, leading to abuse and corruption. He called for “independent monitoring and thorough evaluation” across all interventions.
Highlighting the importance of agriculture, Oye said, “Since a large number of Nigerians depend on agriculture for their livelihoods, the government must invest more in the sector.” He proposed subsidising farm inputs, providing long-term single-digit loans, and expanding agricultural training programmes to boost food security and create sustainable livelihoods.
He also urged the government to expand microfinance access to women and youth to curb the “Japa Syndrome” and encourage local entrepreneurship. “There must be favourable lending conditions and youth-targeted capital funds,” Oye added.
On job creation, Oye advocated for stronger vocational and skills training programmes. He advised the Federal Government to strengthen partnerships with countries like Germany and work with NACCIMA to expand such training nationwide.
Meanwhile, Oye raised concerns over the current tax policies, warning that they could discourage investment. He cited examples like the $220m fine imposed by the Federal Competition and Consumer Protection Commission on WhatsApp and Meta, and turnover taxes by the Financial Reporting Council.
“Extending tax regimes to free trade zones and slamming international investors with heavy fines could harm Nigeria’s investment climate. These policies should be reviewed carefully to support business growth,” he warned.
Oye stressed that boosting infrastructure, especially in rural areas, offering tax incentives to businesses investing in underserved regions, and expanding social safety nets like unemployment benefits and healthcare were critical steps to reduce poverty.
He also linked insecurity, especially in rural areas, to food insecurity and growing poverty levels. He called for urgent action to “restore peace and security” to protect farmers and agricultural production.
On trade, Oye echoed concerns raised by WTO Director-General Dr. Ngozi Okonjo-Iweala and AfDB President Dr. Akinwumi Adesina, calling on Nigeria to make better use of the African Continental Free Trade Area to boost local processing and build a resilient economy.
Meanwhile, he warned about Nigeria’s rising public debt, which stood at N144.67tn as of December 2024, a 48.58 per cent increase from the previous year.
Oye pointed out that according to the Finance Minister, Wale Edun, Nigeria needs a minimum of seven per cent annual growth rate to meaningfully reduce poverty.
He urged the government to act quickly, saying, “By implementing these short-term interventions, we can shield vulnerable Nigerians and push back against rising poverty.”
Oye added that NACCIMA and the OPS are ready to work with all stakeholders to foster sustainable economic growth and improve the lives of Nigerians.
