Nigeria’s development is being crippled by governance lapses, despite recent economic reforms, according to the African Development Bank’s (AfDB) 2025 Nigeria Country Focus Report.
Launched in Abuja, the report titled “Making Nigeria’s Capital Work Better for Its Development” warns that fragmented regulation, corruption, and weak institutions are obstructing efforts to mobilize domestic resources.
The report cites Nigeria’s \$31.5bn annual development financing gap and declining natural and human capital as critical concerns.
With tax-to-GDP at 13%, low health and education spending, and per capita natural capital dropping by 2.1% annually since 1999, the report urges urgent investment and reform.
AfDB officials stressed the need for digital infrastructure, anti-corruption enforcement, and governance reform to sustain economic transformation.
The report projects GDP growth of 3.2% in 2025, down from 3.4% in 2024, due to structural bottlenecks.
Officials from the Federal Inland Revenue Service and private sector stakeholders echoed the call for strong institutions, innovative financing, and tax reform.
AfDB emphasized that Nigeria’s capital—financial, natural, and human—must work together for inclusive, sustainable progress.
