Monday, October 5, 2026

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.

• September 8, 2026
UAE crude oil facility
crude oil facility[Credit: BloomBerg]

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)

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Nigerian Bar Association

States

Independence: NBA urges Nigerians to expect better future

The NBA said that ordinary Nigerians should be deriving benefit from the subsidy removal rather than hardship.

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Troops

States

Troops rescue captives after bandits attack in Zamfara

The army said security forces have intensified operations to deny criminal elements freedom of movement.

World

UK court sentences Abdullah Sabah Albadri who planned terrorist attack on Israeli embassy to 20 years in prison

Mr Albadri was sentenced after an investigation by Counter Terrorism Policing London found him guilty of preparation of terrorist acts.

States

32 people aboard crashed military helicopter in Ondo; rescue operation ongoing: Keyamo

Mr Keyamo said, “Preliminary information suggests that there were 25 passengers and seven crew members on board.”

Atiku Abubakar

NationWide

Atiku praises Nigerian teachers, says Tinubu can’t understand their plights since he had no teacher, classmate

“It is both revealing and deeply embarrassing that Bola Tinubu cannot name a single teacher who stood before him,” Mr Abubakar said.

Atiku Abubakar and Bola Tinubu

NationWide

Tinubu promised to improve security with savings from fuel subsidy removal, yet Nigerians languish in captivity: Atiku

Mr Abubakar decried the recent abduction of 20 prospective corps members and the prolonged captivity of Borno schoolchildren abducted in May.

World

Preteen shot dead in U.S. over parking space dispute

Authorities say they are still investigating the shooting and have asked witnesses to bring information to the police.