Amanze Chinonye
Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Kelvin Oye, has warned that Nigeria’s celebrated economic growth figures mask the worsening hardship facing millions of citizens, describing the situation as “a troubling paradox where GDP rises without progress.”
Speaking at the Lagos Country Club Business Forum 2.0, Oye who is also Life Vice-President and immediate past National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) said Nigeria continues to project macroeconomic success while citizens battle inflation, unemployment and poverty.
He noted that while Nigeria recorded a 3.98 per cent GDP growth in the first quarter of 2025 driven by the non-oil sector, the figures “do not reflect lived realities,” adding that “the economic engine may be running, but it is leaving most of its passengers behind.”
Join our WhatsApp ChannelAccording to him, more than 139 million Nigerians now live in poverty, citing the World Bank’s 2025 report, which underscores the deep disconnect between growth statistics and living standards.
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Inflation: ‘A Two-Headed Monster’
Oye identified the roots of Nigeria’s inflation crisis as a combination of demand-pull factors excess liquidity fuelled by public-sector deficits and cost-push pressures driven by high production costs, unstable power supply, weak infrastructure, exchange-rate volatility and overregulation.
He added a third dimension, “involution”, which he described as a fall in prices driven by unhealthy competition without corresponding productivity or structural improvements.
Monetary Policy ‘Missing the Mark’
The government’s response, he said, has relied heavily on monetary tightening, with the Central Bank of Nigeria raising interest rates to 27 per cent and maintaining a Cash Reserve Ratio of 45 per cent. But this, he argued, has made private-sector borrowing “prohibitively expensive,” as commercial banks now offer loans at 29–33 per cent interest.
Oye commended the CBN for fiscal discipline but insisted that recent improvements in growth and inflation are largely due to private-sector interventions and exchange-rate stabilisation.
“The Dangote Refinery has significantly reduced forex demand for fuel imports, helping stabilise the naira,” he said, emphasising the importance of enabling productive enterprises.
He noted that President Tinubu’s naira-for-crude initiative and sector incentives have boosted private-sector confidence, but internal resistance within government “continues to obstruct full implementation.”
‘Knowledge Without Wisdom’
Oye warned that Nigeria’s economic challenges persist because leaders fail to apply existing knowledge in practical, ethical and coordinated ways.
“We have collected the facts. We know the recipes for fiscal stability and private-sector growth. But knowledge alone is not enough the missing ingredient is wisdom,” he said
He criticised the country’s moral contradictions, arguing that misused religion and weak institutional accountability contribute to insecurity, bad governance and poor economic outcomes.
“We fast and pray for good governance while tolerating bad leaders. We worship for miracles while ignoring planning, discipline and accountability,” he said, describing this as a “failure of wisdom.”
A Call for Courageous, Coordinated Reform
Oye stressed that Nigeria is not beyond repair but warned that time is running out.
“We must stop merely collecting economic data and start creating meaningful livelihoods. We must move beyond knowing we are at a crossroads to wisely choosing the right path,” he said.
He urged policymakers to pursue structural reforms, institutional integrity, and inclusive growth strategies that prioritise human dignity.
“True nation-building binds wisdom to empathy and reforms that restore dignity,” he said.
Oye currently serves as Chairman of the Nigeria–Türkiye Business Council, and remains a leading figure in the country’s organised private sector.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
