Nigeria’s economic hardship fuelled by policies without safeguards – Kale

The Group Chief Economist and Managing Director at the African Export-Import Bank (Afreximbank), Dr Yemi Kale, yesterday blamed Nigeria’s current economic hardship on what he called policies “Without adequate safeguards.” He spoke at the Wednesday in Lagos at the 2025 Vanguard Economic Discourse themed, “Nigeria’s Economic Outlook 2025: Hardship and Pathways to Sustainable Recovery.” In […]

The Group Chief Economist and Managing Director at the African Export-Import Bank (Afreximbank), Dr Yemi Kale, yesterday blamed Nigeria’s current economic hardship on what he called policies “Without adequate safeguards.”

He spoke at the Wednesday in Lagos at the 2025 Vanguard Economic Discourse themed, “Nigeria’s Economic Outlook 2025: Hardship and Pathways to Sustainable Recovery.”

In his keynote address, Kale noted that Nigeria’s current economic hardship is largely the result of domestic policy missteps rather than external shocks.

“Most of Nigeria’s economic hardship is not caused by unforeseen events but by policies introduced without adequate safeguards,” Kale said.

He also noted that capital flight, declining investor confidence and rising poverty are not theoretical issues, saying they are clear indicators of poor economic governance.

“We must address these disruptions with the urgency they demand,” he said.

He emphasised the need for a move from reactive crisis management to proactive governance aimed at shielding Nigerians from future economic shocks.

Kale also highlighted that these domestic policy failures have complicated external policy coordination, disrupted macroeconomic forecasting and limited the flexibility of both fiscal and monetary responses, making traditional approaches increasingly untenable.

“What is required is a comprehensive realignment of our economic strategy, focused on structural reforms, productivity, innovation and a deliberate shift towards inclusive, human-centered development,” the renowned economist emphasised.

The President of the Association of Small Business Owners of Nigeria (ASBON), Dr. Femi Egbesola, also criticised the federal government for insufficient engagement with private sector stakeholders, particularly small and medium enterprises (SMEs).

He revealed that 85.5% of Nigeria’s SME sector consists of nano enterprises — the smallest businesses often overlooked in policymaking. Despite their economic significance, most regulations target larger enterprises, leaving nano businesses unsupported.

“Government must focus on this critical sector to drive real growth,” he stated.

The President of the Nigerian Association of Chambers of Commerce Industries, Mines and Agriculture (NACCIMA), Dele Oye said the current economic situation of Nigeria has brought the country to a crossroad, but strategy is required for success.

 

 

 

Oye, who is the Chairman of Vanguard 2025 Economic Discourse said it is possible for Nigeria to reshape its economic challenges and turn adversity to opportunity.

 

 

 

“Nigeria must succeed and be strategic; we are at crossroads where we can reshape our current destiny, where adversity can give rise to opportunity,” he said.

 

 

 

The Editor of Vanguard Newspapers, Eze Anaba, called for bold, innovative thinking and pragmatic solutions to navigate Nigeria’s current economic challenges.

 

 

 

“You will all agree that, now more than ever, Nigeria’s economy demands innovative thinking and pragmatic solutions.

 

 

 

“The current climate of reforms presents both challenges and opportunities that require informed, strategic responses,” he said.