…says threaten investment

Muhammadu Sanusi II, Emir of Kano and former governor of the Central Bank of Nigeria (CBN), and Atedo Peterside, founder of Stanbic IBTC Bank and the ANAP Foundation, have warned that rent-seeking, corruption and state capture are discouraging private investment and limiting Nigeria’s economic growth.

They said the concentration of economic opportunities among politically connected individuals, weak institutions and market distortions was creating barriers for businesses and investors, making it difficult for Nigeria to mobilise the capital required to accelerate economic growth, industrialisation and job creation.

They made the statement on Tuesday in Abuja at the 2026 Oxford Global Think Tank Leadership Conference, themed “Leadership for a Prosperous Future”, during a panel session titled Bank Economic Leaders Session.

Sanusi called for a shift from rent-seeking to productive capitalism, arguing that Nigeria must build an economy in which wealth is generated through investment, enterprise and competition rather than privileged access to government resources and political connections.

He said the country’s economic reforms would deliver limited benefits unless the government addressed structural weaknesses discouraging private investment and restricting the growth of businesses, particularly small and medium-sized enterprises (SMEs).

Sanusi said Nigeria needed to confront the political and economic interests sustaining its rent-seeking system and determine whether it was ready to embrace a model that rewards productivity, innovation and investment.

“We need to have an ideological conversation. Are we ready to change Nigeria from a rentier state to a capitalist state?” he asked.

According to him, powerful interests benefiting from existing market distortions often resist policies that promote competition, even when such reforms could lower costs for consumers and improve economic efficiency.

He cited the petroleum sector as an example, arguing that resistance to allowing cheaper petroleum products into the domestic market could reflect efforts to protect established commercial interests rather than concerns about consumer welfare.

Sanusi said government policies should encourage local investors and businesses willing to commit capital to productive activities instead of protecting individuals and groups whose wealth depends largely on access to public resources.

He identified corruption, weak institutions and politically influenced investments as constraints on Nigeria’s ability to attract capital and accelerate economic growth.

He warned that concentrating investment opportunities among a small group of wealthy and politically connected individuals was limiting the participation of entrepreneurs and weakening the country’s productive capacity.

For Nigeria to raise economic growth from its current level of about four per cent to the 10 per cent required for significant economic transformation, Sanusi said the country must mobilise more capital, strengthen private enterprise and ensure that public resources are channelled into economically viable investments.

He said small businesses faced significant barriers, particularly during their early years, including regulatory interference, political obstacles and an uneven business environment that favoured established interests over new entrants.

The Emir called for a competitive investment climate in which domestic entrepreneurs and foreign investors could operate under predictable policies and equal conditions.

He also criticised corruption in public procurement and the diversion of government funds into projects with limited economic value, arguing that infrastructure investments should be assessed based on their economic and social returns rather than political considerations.

On the impact of economic reforms on households, Sanusi acknowledged improvements in some macroeconomic indicators, including economic growth, inflation and foreign reserves, but cautioned against treating these developments as evidence of improved living conditions for ordinary Nigerians.

He said the success of economic reforms should also be measured by their impact on poverty, employment, education, healthcare and the distribution of economic opportunities.

Sanusi further called for greater inclusion in governance, warning that the concentration of political appointments and economic opportunities in particular regions could deepen inequality and undermine national cohesion.

He advocated a more equitable distribution of opportunities across the country, alongside greater representation of women and other underrepresented groups in decision-making positions.

On artificial intelligence and Africa’s competitiveness, Sanusi identified electricity and digital infrastructure as essential requirements for productivity and technological development.

He said African countries would struggle to compete in data centres, computing capacity and artificial intelligence without addressing infrastructure deficits, particularly unreliable electricity supply.

He also called for greater investment in education, technology and human capital to prepare Africa’s growing young population for opportunities in the digital economy.

Sanusi said Nigeria’s ability to translate its economic resources into broad-based prosperity would depend on leadership, policy choices and institutional accountability, stressing that sound policies must be matched by effective implementation.

Peterside, who also spoke during the panel session, said Nigeria could not raise economic growth from about four per cent to 10 per cent without significantly increasing investment and creating an environment in which businesses could compete on merit.

He said the country’s investment-to-gross domestic product ratio had declined over the years despite the expansion of the economy, indicating that investment was not growing at the pace required to support economic transformation.

According to him, Nigeria could not depend on a handful of wealthy individuals making large investments while domestic and foreign investors were discouraged by regulatory interference, political connections and an unpredictable business environment.

He said some investors were withdrawing from the Nigerian market or selling their businesses because of the difficulties associated with operating in the country.

Peterside also highlighted the challenges facing SMEs, particularly regulatory pressures that could undermine businesses within their first three years of operation.

He said entrepreneurs should be able to establish and expand businesses without relying on political connections, arguing that a level playing field was necessary to attract investment and encourage competition.

The investment banker also criticised corruption in public procurement, particularly inflated contracts and politically motivated projects, which he said diverted resources from productive investments.

He argued that the diversion of public funds into arrangements benefiting political officeholders and their associates was weakening the government’s capacity to finance economic development.

Peterside said Nigeria must address corruption and state capture if it hoped to achieve higher economic growth and restore investor confidence.

He also warned that the concentration of economic opportunities and political appointments in particular regions could worsen poverty and undermine social stability.

Drawing attention to regional disparities in poverty levels, he said policymakers needed to prioritise areas facing greater economic hardship and ensure that government policies did not further marginalise them.

He argued that unequal access to opportunities was weakening social mobility and making it more difficult for people from poorer backgrounds to escape poverty through education, employment and merit.

Peterside said public institutions must operate fairly and ensure that economic opportunities were not restricted to the families, associates and business interests of politically influential individuals.

He maintained that tackling corruption, enforcing the rule of law and strengthening accountability in government were necessary to restore investor confidence and encourage broader private sector participation.

They stressed that Nigeria’s ability to achieve higher economic growth would depend on improving governance, strengthening institutions, protecting private investment and ensuring that public resources are directed towards productive activities.