By Uche Usim
When Nigeria gained independence from the United Kingdom in 1960, many celebrated what they thought was the end of colonial stranglehold and the beginning of self reliance and unprecedented growth.
But 65 years later, a dispassionate assessment leaves little to cheer for.
The journey has been rough and tough as Nigerians suffered the fallout of poor military and civilian administrations.
Despite vast natural resources buried in the bowels of the nation and capable human resources to harness them, the promise of prosperity has eluded many citizens. Incurable corruption, weak institutions, poor governance and widening inequality continue to fuel multidimensional poverty across the country.
Analysts call it a sickening paradox of rich mineral wealth and widespread poverty.
Another paradox is that the nation boasts of seasoned bankers, economists, engineers, entertainers and other brilliant minds who are building other economies but have a deteriorating one back home.
Millions of Nigerians still grapple with hunger, darkness, poor healthcare, joblessness and lack of access to quality education. These are factors that continue to blunt the country’s progress.
For many ordinary Nigerians, independence anniversaries serve as a painful reminder that freedom has not translated into better living conditions, as daily struggles with food prices, rent and insecurity weigh heavier than national celebrations.
Reflecting on Nigeria’s economic journey, the Director-General of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, noted that while the country has recorded progress in some sectors, structural challenges continue to weigh heavily on overall growth.
According to him, the service sector now accounts for about 56 per cent of GDP, with financial services and ICT leading the transformation.
“Our banks have grown remarkably and can today stand shoulder to shoulder with their peers in service delivery. The entertainment industry has also evolved significantly, just as the media has transformed with the advent of new digital platforms,” he told DailySun.
However, Yusuf lamented that manufacturing has lagged far behind its potential.
“The sector performed strongly up until the 1970s when we had auto assembly plants, but the foreign exchange crisis and other constraints led to their collapse,” he recalled.
He also identified power supply as a major bottleneck, stressing that population growth has far outpaced electricity generation and distribution capacity. On infrastructure, he said the rail sector has suffered years of underinvestment, while the property industry requires far more attention to unlock its full value. Education, though expanded, has not kept pace with the country’s needs.
Yusuf further highlighted rising corruption, insecurity, and crime as persistent challenges, adding that inequality has widened, eroding the middle class that once provided economic stability.
For many, the country has suffered a turbulent economic journey that cannot be dismissed.
From the oil boom of the 1970s to the structural adjustment era, democratic experiments, global recessions and the recent battles with inflation, austerity and insecurity, Nigeria’s economy has been a tale of mixed fortunes. While it is marked by bursts of growth, it is also marred by deep structural flaws. Also commenting, Bismark Rewane, the Chief Executive Officer, Financial Derivatives Limited, said there has been little gains after 65 years and insisted that there is much work to be done in terms of resetting the system by giving the economic ship a different heading.
He said: “I’m not sure that I know of many gains. All I can see is how you can press the reset button.
“You can have all the economic thinkers and all the journalists, but that doesn’t get into the head, the subconscious head of leaders in different parties and political arrangements. No, it doesn’t.
“I don’t think it makes sense for us to go into that blame game. It is that person, it is that tribe; it is that blame game ideology. No.
“This country needs a reset. But definitely, there’s so much to be done. And we seem to have missed the boat many times.
“So, all you have to do is try as much as you can, rather than anything else. We keep on playing the blame game and the truth is, there are huge missed opportunities.
“There is a problem. We really have to begin to think about it in the context of: how is Nigeria going to rearrange itself? So, it’s a big ask. I don’t know how you keep the same economic arrangement and expect different outcomes. Wherever it is, there is a problem. There is a big problem. If you keep the same political arrangement, you are going to get the same outcomes. And how do you do it without rearranging this political arrangement? Because if you don’t, there is a big problem”.
The beginning (1960s–1970s)
In the immediate post-independence years, Nigeria’s economy leaned heavily on agriculture. Cocoa from the western region, groundnut pyramids in the north, and palm oil in the east gave the young nation a steady source of foreign exchange. At the time, agriculture contributed over 60% to GDP and employed the bulk of the population.
Rural communities thrived, and Nigeria was self-sufficient in food production.
The discovery of crude oil in Oloibiri (in today’s Bayelsa state) in 1956, and the subsequent oil boom of the early 1970s, fundamentally altered this trajectory. By 1973, oil accounted for more than 80% of export earnings. Flush with petrodollars, Nigeria embarked on ambitious infrastructural projects, invested in education, and attempted industrialisation through auto assembly plants and steel complexes.
Yet, this oil dependence planted the seeds of vulnerability. Agriculture was neglected, manufacturing struggled to compete with cheap imports, and the economy became dangerously reliant on global oil prices.
Systemic structural shocks (1980s–1990s)
By the early 1980s, oil prices crashed, exposing the fragile foundations of Nigeria’s economy. The country slipped into debt and adopted the International Monetary Fund’s Structural Adjustment Programme (SAP) in 1986. While SAP aimed to diversify the economy, liberalise trade and strengthen private enterprise, its social costs were severe: devaluation of the naira, removal of subsidies, and mass unemployment.
Manufacturing stagnated as forex shortages crippled imports of raw materials. Power supply remained epileptic, discouraging industrial growth. The rail sector fell into neglect, leaving the nation dependent on deteriorating road networks.
This period also witnessed the rise of mass poverty, inequality and brain drain, as skilled Nigerians migrated in search of better opportunities.
Return of civil rule (1999–2010)
With democracy’s return in 1999, optimism re-emerged. Oil prices rebounded in the 2000s, boosting government revenues. The administration of President Olusegun Obasanjo implemented reforms in telecommunications, banking, and pensions. The banking consolidation of 2004 created stronger financial institutions that could compete globally. ICT blossomed, with mobile telephony transforming communication and commerce.
The entertainment sector, particularly Nollywood and Afrobeats, became global exports, boosting Nigeria’s soft power. Yet, manufacturing still lagged, hampered by erratic power supply, infrastructural deficits and foreign exchange horror.
The economy posted impressive growth rates, averaging 6–7% annually during the 2000s. However, this growth was largely non-inclusive, driven by oil, services, and consumption, rather than broad-based industrialisation.
Recent years (2010–2025)
The 2014 global oil price crash again exposed Nigeria’s vulnerability. The economy slid into recession in 2016, followed by another downturn during the COVID-19 pandemic in 2020. Inflation surged, the naira weakened and unemployment soared, particularly among youth.
Despite these setbacks, some sectors have shown resilience: services now account for about 56% of GDP, led by finance, ICT and entertainment. Nigerian banks have transformed and today rival their global peers in service delivery.
ICT has positioned Nigeria as Africa’s startup hub, with fintechs like Flutterwave, Paystack, and Moniepoint attracting global investment. Entertainment has become a billion-dollar export, with Nigerian music topping global charts.
Yet, the gaps remain glaring and worrying; Manufacturing has underperformed. Once promising auto assembly plants collapsed in the 1980s, and forex constraints continue to cripple industrial inputs.
Power supply lags far behind population growth, stifling productivity. Infrastructure remains inadequate, with rail suffering decades of underinvestment. Real estate and property development are vibrant but often frustrated by poor land administration.
Education has expanded, but quality is uneven, and strikes by university unions disrupt learning.
Corruption, insecurity, and crime persist, undermining investor confidence.
Today, Nigeria’s GDP is the largest in Africa, yet its poverty statistics tell a sobering story; over 133 million citizens live in multidimensional poverty, according to the National Bureau of Statistics. Inequality has widened, hollowing out the middle class and deepening social tensions.
Balancing progress and setbacks
Nigeria’s economic performance since 1965 can be described as one of potential repeatedly undermined by policy inconsistency, overreliance on oil, weak institutions and governance challenges.
Where progress has been made, in finance, ICT, entertainment, and services, it has often been driven by private innovation and resilience rather than government planning.
Where the government has dominated, manufacturing, power and infrastructure, inefficiency, corruption and neglect have stifled progress.
Outlook
Analysts argue that for Nigeria to break free from its cycle of fragile booms and painful busts, three imperatives stand out; Diversification beyond oil; Agriculture and manufacturing must be revived with targeted incentives, infrastructure, and export-oriented policies.
Power sector reform: Without reliable electricity, industrialisation will remain a dream.
Human capital investment: Education and healthcare must be strengthened to prepare Nigeria’s youthful population for a competitive global economy.
As many analysts observed, Nigeria has seen remarkable transformation in services, finance, ICT and entertainment, but manufacturing, infrastructure and governance reforms have lagged.
Unless these are fixed, poverty and inequality will continue to overshadow the country’s gains.”
Sixty-five years after independence, Nigeria’s economy remains a paradox. It is one of the highest in Africa by GDP, yet home to some of the world’s poorest people. It has world-class bankers, musicians and entrepreneurs, yet struggles with basic electricity and food security.
The story of Nigeria’s economy since 1965 is, therefore, one of missed opportunities amid pockets of brilliance. If the next 65 years are to be different, the lessons of the past must guide a future built on diversification, inclusiveness and good governance.
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