WorldStage– An Economic expert, Dr Abidemi C. Adegboye of the Department of
Economics, University of Lagos has described Nigeria’s productivity challenge as
both a human tragedy and a defining opportunity. Speaking on the theme Tackling the Issue of Low Productivity in Nigeria on Friday at the 2025 WorldStage Economic Summit (WES), the Guest Speaker said, “With political will, private sector leadership, and coordinated policy action, Nigeria can leverage its demographic dividend, harness technological change, and reverse the productivity malaise to achieve inclusive prosperity and regional leadership.”
Sharing data on the productivity crisis in the country Dr Adegboye said Nigeria’s
GDP per worker in 2024 at $11,800 is far below the global average of $49,000 while
productivity growth at 1.25% (1990-2024) was just 0.22% since 2010, far below 3.5%
average required to absorb the 3.5 million annual labour market entrants.
While average Nigerian worker earns $7/hour as against South Africa’s $30, he said
this represented only 7% of global average productivity level.
L-R: Dr Abidemi Cornelius Adegboye, Department of Economics, University of
Lagos; Mr Adeniran Adebayo, representing Mr. Olanipekun Olukoyede, Executive
Chairman, Economic and Financial Crimes Commission (EFCC); and Mr Segun
Adeleye, President/CEO, World Stage Limited at WorldStage Economic Summit
2025 at the Event Centre, Nigeria Exchange Limited, Lagos
While Nigeria is Africa’s largest economy by population (230+ million) with over
60% of population under age 25 (demographic dividend potential) and oil accounting
for 80% of exports but at less than 10% of GDP, the Real GDP growth of 3.9% in H1
2025 was driven by services and ICT.
He said the productivity paradox of Nigeria is a scale and potential coexisting with
inefficiency and stagnation as 40% of population in agriculture cannot feed 230
million people when compare with 2% of US farmers feeding 350+ million
(productivity differential) and 63% of Nigerians (133 million) are multidimensionally
poor. He identified the sectoral productivity gaps in Nigeria’s economy, in Agriculture with 40% of employment, 22% of GDP (lowest productivity); Manufacturing remaining stagnant at 12% of GDP for decades while Service sector which expanded to 50%+ of GDP is dominated by informal activities with only 20% of workers in formal, high- productivity sectors.
He stated that productivity matters a lot to the economy as it’s the primary
determinant of long-run living standards, engine of structural transformation and
poverty reduction, driver of real wage increases and shared prosperity, and critical for
absorbing 3.5-4 million annual labor market entrants.
He lamented that the economic toll of low productivity include foregone GDP of $4-6
billion annually (2-3% potential growth lost), real wages declined 40% since 2019 in
formal sector, youth unemployment at 15.2% (ages 15-24), while each 1%
productivity shortfall erodes 0.5% fiscal revenues
He also listed the major productivity drivers which Nigeria must address to include
innovation, physical capital, infrastructure, human capital, health, demographics, and
supporting environment.
On current challenging state of productivity divers in Nigeria he said on innovation
R&D spending is at 0.2-0.3% of GDP (peers: 1-2%); Physical Capital- power outages
cost $29 billion annually (6% of GDP); Infrastructure- logistics costs 40% as against
global average of 10%; Human Capital- only 10-12% of workforce has tertiary
education; Health- Human Capital Index 0.36 (child reaches 36% of potential);
Demographics- youth bulge offers opportunity if well-equipped; Institutions -weak
rule of law and corruption control; Macroeconomic stability- volatility deters
investment; Gender equality- women 70% of informal workers; Trade- limited
integration into global value chains; FDI- inflows hampered by institutional
weaknesses; Finance- credit constraints stifle SME growth.
For the country to achieve a desirable economic productivity he said it will require
comprehensive policy framework, economic diversification, infrastructure
investment, human capital development, technology and innovation, financial access
and inclusion, agricultural modernization, and inclusive growth.
On comprehensive policy framework, he said there is a need forstructural
transformation- diversify beyond oil; Human capital- scale vocational training for 10
million youth by 2030; Infrastructure- target 10,000 MW reliable power by 2027;
Innovation- raise R&D to 1% of GDP by 2030.
On economic diversification, he said there is a need to leverage AfCFTA framework
for regional trade expansion; Promote agro-processing, light manufacturing, digital
services; Target 3% annual productivity growth through sectoral policies; and Tax
holidays and export credits for commodity value chains. On infrastructure investment, he mentioned Nigeria Electricity Act 2023: grid upgrades and renewable integration; InfraCorp $10 billion for roads, rail, ports; reduction of logistics costs from 40% to 15% of product value; the need for 2-8% of GDP yearly (2020-2040) for SDG infrastructure.
As for human capital development, he said there should be scale digital skills hubs to
train 10 million youth by 2030; Health interventions for malaria eradication, nutrition
programs; Dual apprenticeship system partnerships with private sector; and Diaspora
knowledge transfer via NiDCOM. On technology and innovation, he said there should be tax incentives for startups and technology transfer hubs as 5.8% GDP contribution by Fintech shows sectoral potential; need to extend digital tools to agriculture and manufacturing while innovation clusters around universities need firm upgrading.
For financial access and inclusion, he called for the expansion of CBN interventions-
NIRSAL, Development Bank of Nigeria; Targeting women and youth entrepreneurs
with blended finance; Fintech lending platforms to deepen credit access; need to
address barriers- collateral requirements, high interest rates.
He also listed the major productivity drivers which Nigeria must address to include
innovation, physical capital, infrastructure, human capital, health, demographics, and
supporting environment.
On current challenging state of productivity divers in Nigeria he said on innovation
R&D spending is at 0.2-0.3% of GDP (peers: 1-2%); Physical Capital- power outages
cost $29 billion annually (6% of GDP); Infrastructure- logistics costs 40% as against
global average of 10%; Human Capital- only 10-12% of workforce has tertiary
education; Health- Human Capital Index 0.36 (child reaches 36% of potential);
Demographics- youth bulge offers opportunity if well-equipped; Institutions -weak
rule of law and corruption control; Macroeconomic stability- volatility deters
investment; Gender equality- women 70% of informal workers; Trade- limited
integration into global value chains; FDI- inflows hampered by institutional
weaknesses; Finance- credit constraints stifle SME growth.
For the country to achieve a desirable economic productivity he said it will require
comprehensive policy framework, economic diversification, infrastructure
investment, human capital development, technology and innovation, financial access
and inclusion, agricultural modernization, and inclusive growth.
On comprehensive policy framework, he said there is a need forstructural
transformation- diversify beyond oil; Human capital- scale vocational training for 10
million youth by 2030; Infrastructure- target 10,000 MW reliable power by 2027;
Innovation- raise R&D to 1% of GDP by 2030.
On economic diversification, he said there is a need to leverage AfCFTA framework
for regional trade expansion; Promote agro-processing, light manufacturing, digital
services; Target 3% annual productivity growth through sectoral policies; and Tax
holidays and export credits for commodity value chains.
On infrastructure investment, he mentioned Nigeria Electricity Act 2023: grid
upgrades and renewable integration; InfraCorp $10 billion for roads, rail, ports;
reduction of logistics costs from 40% to 15% of product value; the need for 2-8% of
GDP yearly (2020-2040) for SDG infrastructure.
As for human capital development, he said there should be scale digital skills hubs to
train 10 million youth by 2030; Health interventions for malaria eradication, nutrition
programs; Dual apprenticeship system partnerships with private sector; and Diaspora
knowledge transfer via NiDCOM.
On technology and innovation, he said there should be tax incentives for startups and
technology transfer hubs as 5.8% GDP contribution by Fintech shows sectoral
potential; need to extend digital tools to agriculture and manufacturing while
innovation clusters around universities need firm upgrading.
For financial access and inclusion, he called for the expansion of CBN interventions-
NIRSAL, Development Bank of Nigeria; Targeting women and youth entrepreneurs
with blended finance; Fintech lending platforms to deepen credit access; need to
address barriers- collateral requirements, high interest rates.
On agricultural modernization, he said with Agro-industrial processing zones in
Kaduna, Cross River, Oyo, there should be target of 15-20% productivity increases
through value addition, create decent jobs and reduce food insecurity while
agriculture employs 40% should have direct poverty reduction impact.
To ensure inclusive growth, he called for gender-inclusive reforms to address land
and credit access barriers; climate-resilient investments for agricultural sustainability;
Social protection to cushion reform impacts; and bridge urban-rural productivity gaps
through targeted policies.
He concluded that, “The challenge of low productivity in Nigeria is far-reaching in terms its causes and implications. The persistent productivity crisis therefore represents both a major developmental hurdle and a defining opportunity for structural transformation.
As this study documents, the nation’s vast human and natural resource endowments have been stymied by structural constraints, sectoral inefficiencies and lagging innovation. These have resulted in historically low output per worker and
slow poverty reduction efforts despite episodic GDP growth. Central to these challenges is a pattern of misallocated capital, weak infrastructure, skills mismatch and institutional fragility that perpetuates deep segmentations in the economy.
“The findings from the study highlight that sustainable economic advancement for Nigeria must be anchored on wide-ranging productivity reforms. Real change towards tackling low productivity in the country demands coherent strategies that combine short-term stabilisation measures with long-term investments. Specifically, investment must target human capital, technological capacity and supportive
institutional frameworks. Policies to broaden sectoral diversification are also vital to absorbing the expanding youth workforce into productive and higher-income employment.
Thus, critical steps in the productivity drive must include upgrading of infrastructure, advancing digital penetration, scaling quality of education thorugh skill-building, promoting inclusive policies for women and vulnerable groups and fostering pro-competitive regulatory environments that incentivise innovation and formalisation.
“Ultimately, the future trajectory of aggregate productivity growth in Nigeria depends on forging a strong consensus around the productivity agenda as the foundation for shared prosperity, social inclusion and long-term economic resilience. Without substantive shifts, especially in education quality, energy supply, financial access and governance efficacy, GDP expansion will remain hollow and millions risk being left behind in the growth process. If Nigeria leverages its demographic dividend
and harnesses technological change it can decisively reverse the current productivity malaise, reduce poverty and chart a path toward middle-income status and regional economic leadership.”
Other speakers at the summit held at the Nigerian Exchange, Lagos include Dr.
Olasupo Olusi, Managing Director/CEO, Bank of Industry (BoI) and Mr. Olanipekun
Olukoyede, Executive Chairman, Economic and Financial Crimes Commission
(EFCC).
ABOUT GUEST SPEAKER
Abidemi Cornelius Adegboye earned a Master of Science (M.Sc.) in Economics with
distinction from the University of Benin, Nigeria where he was the best graduating
student in 2012. He went on to complete a Ph.D. in Development Economics at the
same institution in 2018. He is a research scholar with the African Economic
Research Consortium, Kenya and the African Research Universities Alliance
(ARUA), Ghana. His research areas are in poverty and inequality, employment and labor markets, and structural transformation in sub-Saharan Africa.
He has presented papers in both local and international academic conferences and is well published in reputable local and international journals. Dr. Adegboye is a recipient of the best Ph.D thesis award by the Nigerian Economic Society in 2020 and his research paper on governance and employment in sub-Saharan Africa won the best research paper award at the 2017 African Economic Conference organised by the AfDB, ECA and UNDP in Addis Ababa.
He has also been involved in consultancy services with the National Institute of Legislative and Democratic Studies, Abuja, the Lagos State Government, the United Nations Economic Commission for Africa (UNECA), and African Development Bank (AFDB). He currently teaches Development Economics and Macroeconomics at the Department of Economics in the University of Lagos.
Full list of winners of WorldStage Economic Summit Awars 2025
1- Nigeria LNG Limited
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Gas Company With Outstanding Economic Impacts In Year
2025
2- Gov. Babajide Olusola Sanwo-Olu
The Executive Governor of Lagos State
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of State Governor With Outstanding Economic Impacts In Year 2025
3 Access Bank Plc
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Bank With Outstanding Economic Impacts In Year 2025.
4 Air Peace– Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the category of Nigerian Airline With Outstanding Economic Impacts In Year 2025
5 Dangote Industries Limited
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Manufacturing Group With Outstanding Economic Impacts In
Year 2025
6 Murtala Muhammed International Airport, Lagos
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Airport With Outstanding Economic Impacts In Year 2025
7 Flutterwave
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Startup With Outstanding Economic Impacts In Year 2025
8 Ikeja Electric Plc
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Electricity Distribution Company With Outstanding Economic
Impacts In Year 2025
9 Leadway Pensure PFA
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Pension Fund Administrator With Outstanding Economic
Impacts In Year 2025
10 Maesk Line Nigeria
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Shipping Company With Outstanding Economic Impacts In
Year 2025
11 MainOne
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian ICT Services Company With Outstanding Economic Impacts In
Year 2025
12 Dr. Olubunmi Tunji-Ojo
The Minister of Interior
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Best Minister With Outstanding Economic Impacts In Year
2025
13 Monipoint
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Payment Service Bank With Outstanding Economic Impacts In
Year 2025
14 MRS Oil Nigeria Plc
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Oil Marketing Company With Outstanding Economic Impacts
In Year 2025
15 MTN Nigeria Communication
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Mobile Network Provider With Outstanding Economic Impacts
In Year 2025
16 Stanbic IBTC Stockbrokers Limited
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Stock-Broking Firm With Outstanding Economic Impacts In
Year 2025
17 Nigerian Communications Commission (NCC)
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Best Regulator With Outstanding Economic Impacts In Year
2025
18 Skyway Aviation Handling Company PLC
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Aviation Servicing Company With Outstanding Economic
Impacts In Year 2025.
19 Seplat Energy Plc
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Oil Producing Company With Outstanding Economic Impacts
In Year 2025
20 Sifax Group
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Maritime Company With Outstanding Economic Impacts In
Year 2025
21 Transcorp Power Limited
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Electricity Generating Company With Outstanding Economic
Impacts In Year 2025
22 Leadway Assurance
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Insurance Company With Outstanding Economic Impacts In
Year 2025
23 MTN Nigeria Foundation
Being the Winner of Worldstage Economic Summit (WES) Awards 2025 in the
category of Nigerian Company With CSR That Has Outstanding Economic Impacts
In Year 2025.
