Nigeria Unveils Ambitious Path to a $1 Trillion Economy by 2030: Launches the Economic and Financial Inclusion Initiative

On Wednesday, Nigeria’s federal government unveiled a bold new initiative aimed at establishing an operating model and framework for Economic and Financial Inclusion. This project is part of a larger vision to transform Nigeria into a $1 trillion economy by 2030, focusing on combating poverty and driving sustainable economic growth from the grassroots level.

Vice President Kashim Shettima highlighted the significance of this initiative as a testament to the administration’s commitment to enhancing financial and economic inclusion across the country.

Speaking at the kick-off meeting for the Operating Model for Economic and Financial Inclusion, Shettima noted the administration’s dedication to providing access to capital and eradicating poverty through legislative interventions and critical policies.

This new initiative builds upon the Aso Accord on Economic and Financial Inclusion, unveiled on April 25, 2024. The accord is a comprehensive blueprint designed to achieve universal access to financial services and represents a core pillar of President Bola Tinubu’s Renewed Hope Agenda. This agenda aims to transform Nigeria into a $1 trillion economy by 2030 while addressing poverty and insecurity through broad-based prosperity.

Shettima disclosed that inclusive economic growth and development are at the heart of every strategy championed by Tinubu. He pointed to recent positive outcomes, such as the upgrade of Nigeria’s credit outlook to positive by Fitch Ratings, as recognition of the reform progress under the current administration.

However, Shettima acknowledged the short-term impacts of the reforms and stressed the importance of measures to mitigate the effects, citing the Student Loan Act and efforts by the Federal Ministry of Agriculture and Food Security to combat food insecurity.

The Vice President also highlighted that economic and financial inclusion has been elevated to the agenda of the National Economic Council (NEC), where all governors of the 36 states and the FCT minister participate in crucial policy deliberations alongside other stakeholders. He noted that this elevation underscores the administration’s belief that inclusive growth must be both strategic and sustainable.

Addressing the implementation team and stakeholders, Shettima called on them to recognize the weight of their responsibility.

“You have been entrusted with a vital national assignment, and I have full confidence that you will bring your best efforts to ensure its success,” he stated.

He urged the team to engage all stakeholders fully and contribute their insights, expertise, and dedication to forge a robust operating model that will drive economic and financial inclusion across Nigeria.

Shettima stressed the importance of developing solutions to alleviate the impact of ongoing economic reforms on over 30 million financially excluded Nigerians, propelling the country toward sustainable and inclusive growth.

Speaking at the event, Dr. Nurudeen Zauro, Technical Advisor to the President on Financial Inclusion, reported substantial progress in implementing the Aso Accord on financial inclusion and other initiatives aimed at broadening financial access across the nation. He noted that discussions on financial inclusion have reached the highest levels of government, including the NEC.

Zauro highlighted that the operationalization of the accord has received funding from the Bill & Melinda Gates Foundation through the Lagos Business School (LBS). The team is setting up the operating model and legal framework to ensure the project’s smooth takeoff and alignment with the Renewed Hope Agenda. Collaborators on the team include Augmentum Advisory, Banwo & Ighodalo, and Ndarani (SAN) & CO.

Also, Prof. Olayinka David-West, Project Manager at Lagos Business School, commended the Tinubu administration for prioritizing economic and financial inclusion. She noted that the team at LBS, in collaboration with counterparts in the VP’s office and other stakeholders, is working on the legal framework for financial inclusion and giving the initiative the convening power and national coordination needed to drive ownership across the country.

David-West noted that while LBS and its partners have made deliberate efforts to entrench financial inclusion over the years, the current administration’s initiative will serve as a gateway to successfully operationalizing the policy nationwide.

The engagement with the Vice President aims to identify the right platforms and structures to galvanize relevant authorities to support the initiative.

Current Economic Realities Breed Skeptical Outlook

Nigeria’s economy has faced significant headwinds in recent years, with declining oil revenues, inflation, and foreign exchange instability impacting overall economic performance. The country’s GDP, once a powerhouse in Africa, has struggled to regain its footing, falling below $300 billion. This economic trajectory has led many analysts and citizens to question whether the ambitious goal of transforming Nigeria into a $1 trillion economy by 2030 is achievable under the current administration.

While some analysts believe that the Tinubu administration’s focus on economic and financial inclusion is a step in the right direction, they note it must be coupled with broader economic reforms to address the underlying issues affecting Nigeria’s economy.

For instance, they note that ensuring stability in the foreign exchange market, fostering an environment conducive to foreign investment, and implementing policies that stimulate growth across various sectors are crucial to achieving the ambitious $1 trillion economy target.

While the new initiative and the Aso Accord on Economic and Financial Inclusion provide a framework for addressing some of these challenges, the path to a $1 trillion economy will require more than just regulatory frameworks and financial inclusion efforts, economists note. They add that it will demand a holistic approach, political will, and sustained efforts to drive structural economic reforms and create a resilient, inclusive economy.