Misplaced talent, weak incentives slowing Nigeria’s economy — El-Rufai

A former Kaduna State Governor, Nasir El-Rufai, has said misplaced talent and weak incentives are slowing Nigeria’s economy, as many of the country’s best minds move away from productive sectors.

In a statement shared on Facebook on Wednesday, El-Rufai said, “Nigeria’s growth problem is not primarily a shortage of talent, capital, or ideas. It is a problem of where our best talent goes and — why.”

He explained that many skilled Nigerians are drawn to areas that offer quick and high returns, especially where small differences in skill bring large rewards.

“People do not wake up intending to harm their country. They respond rationally to incentives,” he said, noting that the system rewards rent-seeking more than productive work.

El-Rufai cited figures showing that GDP growth stood at about 4.1 per cent in 2024, while GDP per capita was around 1,084 dollars, placing Nigeria among lower-income economies. He added that about 93 per cent of the labour force is in informal employment, while the tax-to-GDP ratio is 8.2 per cent.

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“These numbers are not abstract,” El-Rufai noted. “They describe an economy where scale is risky, visibility attracts predation, and long-term investment struggles to compete with short-term access.”

On Wednesday morning, El-Rufai was also at the Federal High Court in Kaduna for the hearing of his bail application. He arrived at about 9:00 a.m. and stepped out of his vehicle at 9:05 a.m., drawing attention from security operatives and a few observers. Proceedings on Tuesday had been stalled after the defence filed a motion asking the presiding judge, Justice Rilwan M. Aikawa, to step aside over alleged bias and a pending petition.

Returning to his economic position, El-Rufai said the shift of talent away from productive sectors affects growth.

“When the brightest minds are pulled away from production, the quality of entrepreneurship falls, technological progress slows, and the economy’s long-run growth rate declines.”

He also pointed to challenges such as unreliable power supply, delays at ports, and limited wage employment, which make it harder for businesses to grow.

He noted some progress in non-oil exports, including cocoa, fertiliser, cashew, and processed agricultural products.

“When incentives align—even partially—Nigerian firms can compete and scale,” he said.

El-Rufai called for reforms that would make production more rewarding. He suggested reducing discretionary government powers, making rules more predictable and digital, protecting property rights, and supporting business growth.

Concluding, he said, “Nigeria’s future does not hinge on slogans, nor on personalities. It hinges on who wins in our economy. If the system rewards producers over extractors, growth will follow—rapidly and durably. Nigeria does not lack talent. Nigeria must reallocate it.”