Reported by Weng Patrick Atokor l Journalist at Weng Global
Nigeria’s ability to create enough quality jobs for its rapidly expanding population is being challenged by inadequate investment, weak productivity and structural constraints across the economy, according to analysis and policy discussions by the Nigerian Economic Summit Group (NESG).
The issue has become a central part of the conversation ahead of the 32nd Nigerian Economic Summit (NES #32), scheduled for October 26–27, 2026, in Abuja. The summit is themed “Growth That Works: Delivering Jobs, Productivity and Shared Prosperity.”
For Nigeria, the question is no longer simply whether the economy can grow, but whether that growth can generate sufficient productive employment and broader economic opportunities for millions of people entering the labour market.
The investment challenge
The NESG has repeatedly highlighted the connection between investment, productivity and employment.
Its 2026 macroeconomic outlook noted that although Nigeria has recorded stabilisation gains in areas including economic growth, inflation and the exchange rate, growth remains insufficient for large-scale job creation in a rapidly expanding labour market.
The organisation has also identified weak investment as part of a wider structural problem affecting Nigeria’s productive capacity.
In its analysis of the private sector, NESG said businesses continue to face constraints including high energy costs, limited access to affordable finance, infrastructure gaps, insecurity and logistics challenges. These conditions can restrict companies’ ability to expand operations, invest in productive capacity and create additional employment.
The challenge is particularly important for smaller businesses, which account for a significant part of economic activity but often face greater difficulties accessing capital and scaling their operations.
Why investment matters for employment
Investment does more than provide money for businesses.
When directed towards productive sectors, it can finance factories, agricultural processing facilities, infrastructure, technology, logistics networks and new businesses. These activities can increase production while creating demand for workers with different levels of skills.
NESG’s research on jobs and productivity identified manufacturing, including agro-processing, construction, information and communications technology, and professional services among sectors with significant potential to contribute to formal job creation.
The organisation estimates that Nigeria would need to create 27.3 million jobs between 2025 and 2030, equivalent to an average of about 4.55 million net formal jobs annually, to maintain an unemployment rate of 4.3 percent under the scenario examined in its report.
That scale illustrates why investment levels and the efficiency with which capital is deployed have become important issues in Nigeria’s economic policy debate.
From economic growth to job-rich growth
Nigeria has recorded economic growth in recent years, but NESG has argued that headline growth alone does not necessarily translate into enough productive employment.
In a September 2026 analysis, the organisation described the country’s challenge as a transition from “jobless growth” towards a more job-rich economy.
NESG said Nigeria’s population has surpassed 220 million and that nearly 70 percent of the population is below the age of 35. It also estimated that about three million young people enter the labour market each year.
The implication is significant: even when GDP expands, the economy must grow in sectors capable of absorbing large numbers of workers if growth is to translate into improved livelihoods.
NESG has therefore pointed to sectors such as manufacturing, agro-processing, construction, creative industries and the wider micro, small and medium-sized enterprise ecosystem as important areas for labour absorption.
The problem goes beyond attracting capital
Attracting investment is only one part of the challenge.
Nigeria must also create conditions in which investments can become productive and sustainable.
The NESG has identified infrastructure deficiencies, unreliable electricity, limited access to affordable finance, skills gaps, regulatory challenges and insecurity as factors that increase business costs and constrain expansion.
Its 2026 private-sector outlook said these structural bottlenecks have contributed to firms operating below optimal capacity and have limited investment and competitiveness.
This means that simply increasing the amount of capital entering the economy may not automatically produce the desired employment outcomes.
Investment needs to be accompanied by improvements in the broader business environment, productivity, infrastructure and human capital.
Foreign investment remains part of the equation
Foreign direct investment is another area receiving attention.
The NESG has previously noted that Nigeria has struggled to attract substantial foreign direct investment despite its position as one of Africa’s largest economies.
In its research on investment and global trade shifts, the organisation reported that Nigeria’s FDI averaged about 1.3 percent of GDP between 2000 and 2024, compared with a reported Sub-Saharan African average of 2.3 percent over the same period.
The organisation has also argued that attracting investment requires more than financial incentives. Policy consistency, institutional coordination, regulatory predictability and effective implementation are important factors in building investor confidence.
At a September 2026 NESG dialogue on sustainable FDI, the organisation highlighted concerns around poor execution, regulatory inconsistency and weak institutional coordination. It said FDI should deliver benefits beyond capital inflows, including job creation, technology transfer, local content development and stronger sub-national competitiveness.
The productivity question
The investment debate is closely linked to productivity.
A business that receives capital but faces high production costs, inadequate infrastructure or limited access to skilled workers may struggle to turn that investment into higher output and employment.
NESG’s economic agenda therefore places productivity alongside investment and job creation.
The organisation’s 32nd Nigerian Economic Summit identifies “Produce Nigeria” as one of its major policy tracks, focusing on productivity, investment, industrialisation and value creation. Its stated priorities include unlocking private and public investment in infrastructure, industry and innovation, improving investor confidence and expanding access to finance.
The summit’s wider framework also includes “Work Nigeria,” which focuses on strengthening labour absorption, improving workforce readiness, expanding labour-intensive sectors and improving the competitiveness of MSMEs.
What this means for young Nigerians
Nigeria’s demographic structure makes the employment question particularly urgent.
A large and youthful population can provide a substantial workforce and consumer market if sufficient productive opportunities are created.
But without adequate job creation, the same demographic expansion can place additional pressure on households, businesses and public institutions.
NESG’s research has emphasised that many Nigerians currently work in informal or low-productivity activities. Its jobs and productivity report said more than 90 percent of employment was informal, according to the National Bureau of Statistics data cited in the report.
The challenge, therefore, is not simply to increase the number of people working. It is also to expand access to productive, sustainable and better-quality employment.
The road ahead
The NESG’s economic agenda suggests that Nigeria’s investment debate is increasingly connected to a broader question about the kind of growth the country wants to achieve.
The organisation’s upcoming 32nd Nigerian Economic Summit is expected to bring government, business, development institutions and civil society together to discuss how reforms can translate into jobs, productivity and shared prosperity.
The summit is also expected to focus on investment, infrastructure, industrialisation, human capital, skills development and the business environment.
For Nigeria, the outcome will depend not only on the volume of investment secured, but also on whether capital is channelled into sectors capable of expanding production, improving productivity and absorbing the country’s growing workforce.
The central economic challenge is therefore becoming increasingly clear: growth must translate into productive opportunities at a scale capable of keeping pace with Nigeria’s population and labour force.
Why It Matters
The investment debate goes beyond government statistics or corporate balance sheets. Its consequences are visible in employment opportunities, household incomes, business expansion and the ability of young Nigerians to build sustainable livelihoods.
If investment remains constrained or fails to reach productive sectors, economic growth may continue without generating enough quality employment. Conversely, investment combined with stronger infrastructure, skills, finance and productivity could expand the economy’s capacity to create jobs.
The challenge identified by the NESG is therefore fundamentally about converting economic activity into broader opportunity.
What Happens Next
The 32nd Nigerian Economic Summit is scheduled for October 26–27, 2026, at Transcorp Hilton in Abuja, with the theme “Growth That Works: Delivering Jobs, Productivity and Shared Prosperity.”
The summit will provide a platform for further discussions on how Nigeria can move from economic stabilisation towards investment-, productivity- and jobs-led growth.
For policymakers and the private sector, the key issue will be how those discussions translate into practical measures that improve investment conditions, strengthen productive sectors and expand employment opportunities.
Weng Global – Stories beyond borders
Sources
- Nigerian Economic Summit Group (NESG) — 32nd Nigerian Economic Summit framework and objectives.
- Nigerian Economic Summit Group — From Jobless Growth to a Job-Rich Economy: Nigeria’s Defining Labour Challenge.
- Nigerian Economic Summit Group — From Hustle to Decent Work: Unlocking Nigeria’s Jobs and Productivity Potential.
- Nigerian Economic Summit Group — Nigeria’s Private Sector Outlook 2026.
- Nigerian Economic Summit Group — Unlocking Sustainable FDI for Productivity and Shared Prosperity.
