Oil, MSME investment key to sustaining GDP growth, say economists

Economists have urged the federal government to adopt measures that will increase crude oil production and provide more support for the micro, small and medium enterprises sector.
They also said increased investment in agriculture and its value chain would ensure food security and drive economic growth. The economists made the call in separate interviews in Lagos on Tuesday.
Sherifdeen Tella of the Department of Economics, Babcock University, Ogun, said raising oil output would spur economic growth.
“The government should be innovative in increasing crude oil output and address economic saboteurs undermining production, especially now that oil prices are on the rise globally.
“Government should also enhance its export quota and ensure adequate crude supply to Dangote Refinery. This will guarantee self-sufficiency and expedite economic growth,” Mr Tella said.
He stressed that government at both federal and sub-national levels should accord greater attention to agriculture and its value chain.
“More funds should be earmarked to subsidise agricultural production and decelerate food inflation. This will, in turn, ensure social stability and have positive effects on the general economy,” he said.
Also speaking, Ndubisi Nwokoma of the Department of Economics, Caleb University, advocated more support for the MSME sector.
He noted that the sector faced an unfavourable business environment that had hampered its growth.
“Currently, the sector is not doing well. It is the big firms and multinationals that are benefiting from government policies and declaring profits. The government needs to reduce the rising cost of governance and re-channel such funds to the growth of the MSME sector,” Mr Nwokoma said.
He urged the government to accord more attention to MSMEs because of their critical role in domestic economic growth.
“Countries that make up the Asian Tigers enhanced their economies by promoting their MSME sectors. Our government should replicate such programmes,” he added.
The National Bureau of Statistics said Nigeria’s gross domestic product grew by 4.43 per cent year-on-year in real terms in the second quarter of 2026. According to the Q2 2026 GDP Report, the figure is higher than the 4.23 per cent recorded in the corresponding period of 2025.
The report also showed that crude oil production rose to 1.72 million barrels per day, the highest since 2022. Agriculture grew by 4.39 per cent in the period under review, up from 2.82 per cent in Q2 2025.
The industry sector grew by 3.96 per cent, compared to 7.46 per cent in Q2 2025, while the services sector recorded 4.60 per cent growth, up from 3.94 per cent.
(NAN)
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