Dear Subscriber,

It feels like 2008/2009 all over again. Maybe even worse. From a pandemic to rising geopolitical tensions, bank collapses, aggressive monetary policy tightening and a global economic slowdown, the world has not caught a break since 2020. And neither have Nigerians, as 2023 started off with one of the toughest elections since 1999.

But elections aside, Nigeria has many other macroeconomic and structural problems that need to be addressed.

Nigeria’s industrialization and its setback

Manufacturing is one of these problems, as it is key to unlocking productivity, bigger export revenues and sustainable development. However, Nigeria is far from achieving its much-desired level of industrialization, as stated in the National Development Plan 2021–2025. Past industrial policies have been inefficient due to poor investment in infrastructure and low implementation of policies, leading to a decline in the sector’s contribution to GDP to 8.4% from 20% in the 1990s. For Nigeria’s industrialization to be successful, policymakers need to encourage foreign investment, push for a diversified economy, and implement comprehensive industrial policies.

Inequality is exploding globally

Inequality has spanned through many economies over the years, resulting in a social stratum where the rich become richer and the poor become poorer, even in the hardest of times like today. According to Oxfam, 63% ($26 trillion) of the newly created wealth between 2020 and 2021 was amassed by the top 1%. The next 9% had 27% ($11 trillion), while the bottom 90% was left with only 10% ($5 trillion). For every dollar the bottom 90% have gained since 2020, billionaires have gained $1.7 million.

In this edition of the Bimonthly publication, the FDC think tank analyses these issues and more, providing the implications on your business and the overall economy.

Enjoy your read!