NESG Says Nigeria Needs More Investment to Match Job-Creation Demands

By GLEBM News Desk

Nigeria’s ability to generate sufficient employment and raise productivity will depend partly on whether investment expands across businesses, infrastructure, innovation and workforce development, the Nigerian Economic Summit Group has said.

The private-sector-led policy organisation warned that current investment levels remain inadequate for the scale of job creation and broad-based economic growth required by the country’s growing population. The position was made public on September 27 ahead of the 32nd Nigerian Economic Summit, scheduled for October 26 and 27 in Abuja.

The warning places investment at the centre of Nigeria’s employment challenge. While economic growth can increase national output, its impact on household incomes depends on whether businesses expand operations, create jobs and develop the capacity to serve a larger market.

Investment is important because companies need capital to establish facilities, acquire equipment, introduce technology, develop new products and recruit workers. When investment remains weak or is concentrated in activities that generate relatively few jobs, economic expansion may not translate into employment opportunities at the scale required.

For Nigerian businesses, investment decisions are influenced by several interconnected factors, including borrowing costs, exchange-rate stability, electricity supply, transport infrastructure, taxation, regulatory certainty and consumer demand. Uncertainty across these areas can encourage firms to postpone expansion or direct available funds towards maintaining existing operations instead of creating new capacity.

Small and medium-sized enterprises are particularly important to this discussion. Many operate with limited working capital and have difficulty obtaining affordable long-term financing. Even where demand exists, businesses may struggle to purchase equipment, increase stock, open additional locations or hire more staff without dependable access to credit.

Infrastructure investment also has a direct connection to private-sector productivity. More reliable electricity can reduce operating expenses, while improved roads, ports and logistics systems can lower delivery costs and help businesses reach new markets. Investment in digital infrastructure and skills development can support new services and enable existing firms to adopt more efficient processes.

The employment question extends beyond the number of jobs created. Workers also need opportunities that offer dependable earnings, opportunities for advancement and conditions that allow them to remain economically productive. Employers, meanwhile, require workers with relevant technical and professional skills.

This creates a need to connect investment priorities with workforce development. Vocational education, technical training, apprenticeships and collaboration between employers and training institutions can help narrow the gap between available skills and the needs of expanding industries.

The NESG’s intervention comes as preparations continue for its annual summit, which brings together business leaders, policymakers and other stakeholders to discuss Nigeria’s economic direction. The organisation’s warning establishes job creation and productivity as important measures against which investment policies can be assessed.

For businesses considering expansion, the practical issue is whether economic conditions allow them to commit capital over several years with reasonable confidence. For workers and jobseekers, the corresponding concern is whether that investment produces additional employment and sustainable livelihoods.

Nigeria’s investment debate therefore involves more than attracting capital. It also concerns the sectors receiving funding, the productivity gains achieved and the extent to which new economic activity creates opportunities for workers and businesses across different regions.