Nigeria must attract private capital to spur market growth, says Salami
Nigeria's economic reforms must shift from stabilisation to attracting private capital to generate the growth needed to outpace its 2.1% population expansion and revive capital markets.
Dr. Doyin Salami, CEO of KAINOS Edge Consulting Limited, told the Anchoria Quorum Investor Forum that Nigeria must urgently create an environment that draws private capital, as government spending alone cannot finance economic transformation.
For investors and market professionals, the successful implementation of this pivot would have direct consequences for Nigeria's financial infrastructure. Salami argued that a surge in domestic and foreign private investment would boost liquidity and activity across the country's equity, debt, and foreign exchange markets. “If that happens, all the markets for capital will thrive. It doesn’t matter whether it’s equity markets, debt markets or foreign exchange markets,” he said.
The urgency stems from current growth figures that barely outpace demographic expansion. National Bureau of Statistics data shows real GDP grew 3.89% year-on-year in the first quarter of 2026, up from 3.13% a year earlier but down from 4.07% in the final quarter of 2025. With the World Bank estimating annual population growth at 2.1% for a nation of over 242 million, Salami warned that marginal outperformance is insufficient.
He stressed that the economy must expand at roughly twice the population growth rate for at least the next decade to improve living standards and create jobs. “Unless you grow faster than population, your output is not going to leave enough room for people to feel the benefits of growth,” he added.
This necessitates a shift in the government's reform agenda. Salami noted that recent policies have successfully restored macroeconomic stability, calling the first phase of the reform programme largely successful. “For me, the first piece of reform is about ensuring economic stability and I would argue that from where we started, a lot of progress has been made,” he said.
However, he cautioned that stabilisation cannot be an end in itself. “The next key piece of the puzzle is how do we grow this economy rapidly, sustainably, in a sustained fashion and inclusively,” Salami said. He observed that while recent policy pronouncements suggest officials understand the need for this transition, the ultimate test will be execution. “What is going to drive growth in Nigeria at the heart of it is going to be whether Nigeria very quickly recognizes the imperative of private capital and moves to encourage private capital into Nigeria,” he said.
