The Nigerian Economic Summit Group (NESG) has called for a deliberate redistribution of economic activity across Nigeria’s 36 states and the Federal Capital Territory (FCT). The group warned that the excessive concentration of businesses and investments in a few major urban centres is limiting the country’s overall growth potential.
This position was made known by the NESG ahead of the 32nd Nigerian Economic Summit. The group argues that the current economic model, which heavily favours a handful of hubs, creates an imbalance that hinders national prosperity.
The NESG’s recommendation focuses on expanding opportunities beyond the traditional commercial and administrative hubs of Lagos and Abuja. By decentralising economic activity, the group aims to unlock the latent capacity of other states, ensuring more equitable development across the federation.
Mitigating regional economic disparities
Nigeria’s current economic structure is heavily weighted towards Lagos, the nation’s primary commercial engine, and Abuja, the administrative centre. While these cities attract the bulk of domestic and foreign investment, the NESG maintains that this concentration creates systemic economic risks.
The heavy reliance on these urban hubs often results in intense migration patterns, which place significant pressure on the infrastructure, housing, and social services of these cities. At the same time, many other states across the country possess vast, untapped resources in agriculture, mining, and manufacturing that remain underutilised due to a lack of industrial focus and investment.
The lack of economic diversification in several states also contributes to high rates of youth unemployment in rural and semi-urban areas. By decentralising industries, the government and private sector could create more localised employment opportunities, reducing the need for rural-to-urban migration and helping to build more resilient local economies.
Redistributing economic activity could help alleviate the strain on Lagos and Abuja while stimulating growth in less developed regions. This strategy may also support the development of regional tech and innovation hubs, much like the ongoing efforts to drive change in Nigeria’s startup ecosystem through institutional partnerships and specialised chambers of commerce.
As the 32nd Nigerian Economic Summit approaches, industry leaders and policymakers are expected to discuss the implementation of such a redistribution. Potential strategies include the introduction of regional tax incentives, improvements in inter-state logistics, and enhanced digital infrastructure to support businesses outside the major metropolitan areas. The NESG’s proposals will be a central part of the discussions aimed at creating a more inclusive economic roadmap for the country.
