Connect with us

Opinion

Political Economy of Nigeria’s Economic Growth and the Power Sector

Published

on

By Adefolarin A. Olamiekan

There is no gainsaying the current macroeconomic realities confronting Nigeria, which have tempered the high expectations for economic growth in 2026.Ordinarily, economic growth should translate into improved living standards, price stability, job creation, reduced import dependence, increased productivity, and broader developmental outcomes. However, the Nigerian experience remains markedly different, as many households continue to grapple with rising living costs and persistent economic hardship.

Despite these challenges, several projections indicate that Nigeria’s economy may maintain an upward growth trajectory in 2026, even as the country enters a period of intense political activity ahead of the 2027 general elections.

The economy recorded a Gross Domestic Product (GDP) growth rate of 3.89 per cent in the first quarter of 2026, driven largely by the resilience of the non-oil sector. The services sector remained the principal driver of growth, while agriculture recorded a recovery, growing by 3.15 per cent after previous setbacks that many analysts attributed to widespread insecurity.

Nevertheless, preparations for the 2027 elections could affect economic activity by dampening investor confidence and slowing trade, investment, and other productive ventures.

Global developments also remain a factor. Ongoing geopolitical tensions in the Middle East, particularly involving the United States and Iran, have contributed to volatility in crude oil prices, increased energy costs, and disruptions in fertilizer supply chains. While these developments pose challenges, they may also boost government revenues through higher oil earnings.

Recent economic reforms introduced by the Federal Government are expected to yield stronger results in the coming years. These efforts have been complemented by the banking sector recapitalisation programme, while reforms in the insurance and capital market sectors continue.

Several sectors possess significant growth potential, including banking, capital markets, oil and gas, telecommunications, real estate, construction, agriculture, manufacturing, mining, the creative industry, and international trade.

Diaspora remittances also continue to play an important role in strengthening Nigeria’s foreign exchange position. Additionally, the implementation of the 2026 national budget, particularly through capital expenditure and infrastructure investments, is expected to stimulate economic activity and support growth.

Political campaign spending ahead of the 2027 elections may also provide short-term economic stimulus in sectors such as printing, advertising, transportation, hospitality, event management, and the production of campaign materials.

Taken together, these factors will influence the direction of Nigeria’s economic growth and development in 2026 and beyond. A critical element in this equation is electricity. The relationship between economic growth and a reliable power supply cannot be overstated. Stable electricity is the foundation of industrialisation and has been a key driver of economic advancement in many developed countries.Unfortunately, Nigeria continues to face persistent power sector challenges.

These difficulties are not recent but reflect decades of inadequate investment, policy inconsistencies, and a failure to fully recognise the strategic importance of reliable electricity to economic development. Despite an installed generation capacity of approximately 16,000 megawatts and access to hydro, thermal, and renewable energy sources, electricity supply remains insufficient to meet national demand.

For Nigeria to achieve sustainable economic growth and industrial development, significant improvements are required across the entire electricity value chain, including generation, transmission, and distribution.The ongoing reforms in the power sector are therefore critical.

Greater liberalisation, increased private-sector participation, improved financing, and stronger technical and managerial capacity are essential to unlocking the sector’s potential.The reforms must also address long-standing issues such as cost-reflective tariffs, metering deficits, and operational inefficiencies that continue to affect consumers and businesses.

From a political economy perspective, the success of Nigeria’s growth ambitions will depend largely on the ability of policymakers to sustain reforms, strengthen institutions, improve infrastructure, and deliver a reliable electricity supply capable of supporting industrialisation, productivity, and long-term competitiveness.

Adefolarin A. Olamiekan

Political Economist

Host, The Market Report

ADBN Television, Abuja

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Opinion

The Shifting Power Dynamics in the 21st Century: How Economic and Political Forces are Reshaping the Global Order

Published

on

By Solomon Iliya Jeffrey

The global landscape is undergoing one of the most significant transformations in modern history. Economic power is no longer concentrated in a few traditional centers, and political influence isincreasingly shaped by emerging nations, technological innovation, and shifting alliances. The 21st century is not defined by stability, but by transition, a gradual reordering of how power isdistributed and exercised across the world.

For much of the 20th century, global dominance was largely held by Western economies,particularly the United States and its European allies. Their influence extended beyond economics into global governance, security, and cultural leadership. However, the rise of new economic powers has begun to challenge this long-standing structure.

Countries such as China, India, and Brazil have expanded their economic reach, driven byindustrial growth, population advantages, and strategic investments. This shift has contributed to a more multipolar world, where influence is shared among several key players rather than controlled by a single dominant force.At the heart of this transformation is globalization.

For decades, interconnected trade systems allowed goods, services, and capital to move across borders with increasing ease. This created opportunities for growth, lifted millions out of poverty, and integrated economies in unprecedented ways. Yet, globalization has also revealed its weaknesses.

Economic inequality, both within and between nations, has become more pronounced. Whilesome countries and individuals have benefited greatly, others have been left behind. Thisimbalance has fueled political dissatisfaction, leading to the rise of nationalism and protectionist policies in various parts of the world.

Trade tensions have become a defining feature of modern global politics. Nations are no longer justcompeting economically, they are competing strategically. Control over resources, supply chains, and technological dominance has become a central concern. Industries such as artificial intelligence, energy, and telecommunications are now deeply tied to national security.

Technology, in particular, has emerged as a powerful tool of both economic growth and political influence. Countries that lead in innovation are better positioned to shape global standards and control critical infrastructure. As a result, digital competition has become as important as traditional economic competition.

Another major factor shaping the global order is geopolitics. Alliances are evolving, and newpartnerships are being formed based on shared interests rather than historical ties. Regionalorganizations and economic blocs are playing a greater role in influencing global decisions,reflecting the growing importance of collective power.

At the same time, global challenges such as climate change, pandemics, and financial instability require cooperation. No single nation can address these issues alone. This creates a complex dynamic: while countries compete for influence, they must also collaborate to manage shared risks.

For developing nations, this changing environment presents both opportunities and challenges. On one hand, they can leverage new partnerships, attract investment, and participate more actively in global trade. On the other hand, they must navigate external pressures, avoid excessive dependence, and build resilient domestic economies.

Africa, for instance, is increasingly recognized as a region of strategic importance due to itspopulation growth, natural resources, and economic potential. Countries within the continent have the opportunity to shape their own development paths by strengthening regional integration, improving governance, and investing in human capital.

The future of the global economy will likely be defined by adaptability. Nations that can respond to change, by embracing innovation, diversifying their economies, and maintaining politicalstability, will be better positioned to thrive. Those that resist change risk being left behind.Ultimately, the world is moving toward a more interconnected yet competitive system.

Power is no longer static; it is constantly being negotiated through economic performance, political strategy, and technological advancement.The emerging global order is not about who dominates, but about who adapts best.

Solomon Iliya Jeffrey is a serving corper at Institute for Peace and Conflict Resolution and can bereached via solomonjefferey24@gmail.com

Continue Reading

Opinion

Aondoakaa, a Leader Who Opens Doors: My Personal Story of Chief Michael Kaase Aondoakaa, SAN

Published

on

By Iorwuese Tyopev, PhD

Chief Michael Kaase Aondoakaa, SAN, is, in my experience, a transformational leader, and I can personally testify to this from years of direct engagement with him.

Although I initially knew him only casually as an elder brother from Ushongo, our relationship deepened when I approached him to patronise the business I managed as a hotel manager in Abuja. From that point, Siman Suites in Garki became his preferred accommodation whenever he was in the Federal Capital Territory.

Each time he was travelling to Abuja, his usual call would come: “Tyopev, my brother, please keep a room for me, I’m on my way.”

A defining moment in 2006

One of the most memorable moments in our relationship came in 2006 when he was conferred with the rank of Senior Advocate of Nigeria (SAN). For his swearing-in ceremony at the Supreme Court, he booked almost the entire hotel for family, friends, and well-wishers who travelled from far and near to celebrate with him.

Beyond the business value, his consistent patronage strengthened my professional standing at the time and positively influenced my performance evaluation at work.

Continued relationship in public service

Our relationship continued after his appointment as Attorney General of the Federation and Minister of Justice in July 2007 under the administration of President Umaru Musa Yar’Adua.

Coincidentally, around the same period, my late boss, Senator J.I. Akaagerger, was elected into office and invited me to serve as his Senior Legislative Aide at the National Assembly. Chief Aondoakaa also expressed interest in bringing me into the Ministry of Justice as an aide. Although I chose to remain with my principal at the National Assembly, he respected my decision and maintained a cordial, brotherly relationship with me.

Prison decongestion intervention

Shortly after assuming office as Minister, he launched a prison decongestion initiative. In September 2007, I submitted an application requesting allocation of prison decongestion cases. He immediately asked whether I had legal representation, and upon confirmation, he promptly assigned several cases to me.

That support continued throughout his tenure until 2010.

Career support and mentorship

By mid-2008, I expressed dissatisfaction with my role at the National Assembly. He advised patience and assured me of better opportunities.

True to his word, in January 2009, he informed me of an opportunity with Dr Paul Orhii, then Director-General of the National Agency for Food and Drug Administration and Control (NAFDAC), who agreed to engage me as Special Assistant.

Although I resumed duty, I was later informed—within 30 days—that my services were no longer required due to a change in preference. Chief Aondoakaa was abroad at the time, but upon his return, he reassured me, saying: “Don’t worry, another opportunity will come.”

New opportunity at NAPTIP

Shortly after, I was invited to his residence in Apo, where I met Barr. Simon Chuzi Egede, MON, who had just been appointed Executive Secretary of the National Agency for the Prohibition of Trafficking in Persons (NAPTIP).

There, I was informed that I would serve as Special Assistant to the new Executive Secretary.

In a remarkable turn of events, I received my appointment letter the next day as Special Assistant at Grade Level 16 Step 5, along with an official vehicle and chauffeur. I was also integrated into top management committees and exposed to both national and international engagements.

End of an era and lasting gratitude

Following the death of President Yar’Adua in 2010 and subsequent political changes, Chief Aondoakaa left office as Minister, which also affected my position at NAPTIP due to its political nature.

Looking back, I remain deeply grateful to Chief Michael Kaase Aondoakaa, SAN, for his loyalty, mentorship, and willingness to uplift others.

Some leaders inspire with words; others transform lives through action. Chief Aondoakaa, in my experience, belongs firmly to the latter category.

NB: This is Part 1 of a series of reflections on my personal experience with MKA, highlighting his mentorship and support to those around him, shared in anticipation of his birthday on June 12.

Continue Reading

Opinion

Previewing The Recurring Camp Tent Headaches During Hajj Rites In Mina.

Published

on

By Ibrahim Muhammad.

Experience and records over the years have shown that between 80 and 90 per cent of the challenges that place Hajj administrators, especially the National Hajj Commission of Nigeria (NAHCON) and private Hajj operators, under the weight of negative spotlight usually originate from issues surrounding tent allocation to VIP pilgrims during the Tashreek days in Mina.

The premium camp facilities, popularly known as Tent A and Tent A Plus, are reserved for pilgrims who pay for high-end Hajj packages priced in US dollars, while pilgrims from state Muslim pilgrims welfare boards are mostly accommodated under the Tent D category.

The challenge of space management in Mina is a global issue arising from the limited size of the valley compared to the huge number of pilgrims occupying the same space during Hajj.

However, there are three major loopholes that make the annual challenge more troubling. These include the insincerity of service providers regarding the actual space secured for their clients, the tendency of some tour operators to market packages they do not have, and the growing quest for luxury in a place historically associated with sacrifice and hardship.

In 2016, a research project using the Mina Tent Distribution Algorithm (MTDA) was conducted to improve the utilisation of available accommodation space in Mina. The MTDA employed seven functions to determine the best-fit accommodation for pilgrims within the available tents.

Experimental results showed that the system outperformed eight other allocation models by successfully accommodating 80 per cent of pilgrims within 76.2 per cent of the available space in Mina. Yet, even the best experimental result did not guarantee accommodation for all pilgrims within the tent facilities.

Mina covers an area of approximately 7.82 square kilometres, with only about 61 per cent of the landmass effectively utilised due to the rocky and hilly terrain. Tent sizes vary between 8 square metres, 6 by 8 metres, and 12 by 8 metres.

Over the last 15 years, the issue of how many pilgrims Mina can comfortably accommodate has remained a recurring pre-Hajj concern among participating countries.

Before the introduction of additional service lanes and support infrastructure, the tent city was originally designed to host about 850,000 pilgrims, with each pilgrim expected to have a sleeping space within Mina.

However, the construction of support facilities such as the Al Mashaaer Railway, medical centres, security posts, ministry offices, emergency response centres, and fire service stations has significantly reduced available accommodation space.

These facilities now consume nearly 20 per cent of the original capacity projections.

In reality, Mina can no longer comfortably host 800,000 pilgrims, talk less of the over 1.2 million pilgrims expected for this year’s Hajj. Another factor contributing to the space crisis is the introduction of mattresses inside tents.

Unlike previous years when pilgrims slept on rugs, mattresses now occupy additional space and further compress accommodation capacity.

This year, there have already been complaints from many of the top Hajj-participating countries over inadequate tent space allocation for their pilgrims in Mina.

Anticipating possible shortages, the Saudi Ministry of Hajj had in previous years directed many pilgrims, especially those from Gulf Cooperation Council (GCC) countries, to proceed directly from their hotels in Makkah to Arafat, thereby skipping the first day in Mina to ease congestion.

Although Kidana Development Company added 79 two-storey accommodation complexes with 7,838 restrooms after earlier expanding existing facilities with 18 additional complexes, the challenge persists because the structures themselves occupy substantial portions of land.

Therefore, the issue of securing comfortable accommodation in Mina within the current global Hajj allocation of about 2.3 million pilgrims will continue to remain a major challenge for Saudi authorities and Hajj-participating countries.

This year may not be different. There are indications that some private Hajj operators failed to secure Tent A spaces for their clients but still marketed their packages as Tent A services, whereas the actual bookings were made under Tent B or Tent C categories.

Any Nigerian elite who pays $15,000 or more for Tent A services and eventually discovers that he has been placed elsewhere may trigger serious outrage in Mina over the perceived deception.

However, the Saudi Ministry of Hajj’s implementation of “No NUSUK No Hajj” helped to free up more space in Tent D for State pilgrims last year.

The influx of unauthorized pilgrims into Tent D was drastically decreased, but Tent A was an exception.

Governors, senators, highly influential politicians, and their family members are among the regular subscribers to Tent A packages.

Any disappointment involving this category of pilgrims will certainly attract public attention and widespread criticism.

Way Forward NAHCON, as the apex Hajj regulatory body in Nigeria, should establish a special committee to work closely with private tour operators in verifying the exact category of tents secured for VIP pilgrims before movement to Mina.

Such a committee should engage directly with the service providers handling Masha’ir services to confirm the actual allocation granted to each pilgrim.

Private tour operators found to have downgraded pilgrims from the agreed tent category should be compelled to notify affected clients before the Hajj rites commence, issue appropriate apologies, and arrange refunds where necessary.

Pilgrims who pay premium fees deserve transparency, accountability, and the exact services promised to them.

Mohammed is the National Coordinator Independent Hajj Reporters From Makkah

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.