SUSTAINABLE DEVELOPMENT, ECONOMIC DIVERSIFICATION AND POVERTY ERADICATION – TRANSITIONING NIGERIA TO A DEVELOPED ECONOMY

Abstract

Nigeria is endowed naturally with human capital and natural resources; however, it hasn’t successfully converted these assets into sustainable economic development through diversification into an industrial economy driven by a strong import substitution and export led growth. It has therefore lagged in most development ranking globally, with most of its population, about 61%, living under poverty line in 2025, with a projection to 62% in 2026 according to the World Bank. While the Nigerian Bureau of Statistics 1st-3rd quarters economic performance showed the non-oil sectors making up to 95% of GDP, the data also showed that crude oil and petroleum products still accounted for 85% of total export proceeds during these periods, an indication of its continued reliance on the petroleum sector for its revenue. Unfortunately, due to the typical volatilities associated with commodities export, Nigeria could only earn a total revenue of N10.7 trillion as against a projected N40.8 trillion in 2025 due to underperformance in crude oil and gas earnings. This paper therefore presses further for government to take very pragmatic steps at diversifying its revenue base by ensuring favourable business environment; strategically pursuing measures to promote industrialization, such as ensuring security, power, infrastructures, and fiscal incentives to promote investments. It must also embark on data acquisition and carry out evaluation of the various value chain investment opportunities for its solid mineral, crude oil and gas, and agricultural produce for Nigerian private sectors to participate in global value chain, and to also support the import substitution and export led economic growth plans. Finally, the country must also ensure regulatory stability and seamless access to information and licenses, review its land tenure systems, pursue research and development, embark on focused human capacity development, and deliberately invest and also encourage investment in technology, especially in artificial intelligence, data centers, and innovations to propel its economic growth trajectory.