A COUNTRY PRIVATE SECTOR DIAGNOSTIC - Crowding in the Private Sector: Nigeria’s Path to Faster Job Creation and Structural Transformation

Jul 19, 2026

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Crowding in the Private Sector: Nigeria’s Path to Faster Job Creation and Structural Transformation presents a diagnostic of Nigeria’s private sector and the conditions shaping market development. It examines the country context, including volatile growth, high inequality, and oil dependence, then reviews the state of the private sector characterized by a dominant micro, small, and informal segment and broadly low productivity. The report identifies cross-cutting constraints across macroeconomic and financial policies, infrastructure gaps, and additional barriers such as security, corruption, human capital shortfalls, skills deficits, health outcomes, and land administration inefficiencies, and derives sector opportunity areas including agribusiness, mining, manufacturing, and ICT.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages115

Reading Time4 h 50 min

AccessFree to download

Acknowledgments

Abbreviations

Executive Summary

Introduction and Country Context

Volatile Growth and High Inequality despite Significant Resource Base

The Challenges of Nigeria’s Oil-Dependent Economy

Beyond Oil—A Path to Sustainable and Inclusive Growth

State of the Private Sector

Predominance of the Micro, Small, and Informal Sector

Low Productivity Prevalent Across Sectors

Cross-Cutting Constraints in the Nigerian Economy

Weak Macroeconomic and Financial Sector Policy Framework

Infrastructure Deficiencies

Other Constraints

Identifying Sector Opportunities

Agribusiness

Mining

Manufacturing

ICT and the Digital Economy

A COUNTRY PRIVATE SECTOR DIAGNOSTIC CREATING MARKETS IN NIGERIA blisclosure Authorized u li iD sc os re Authorized Public Disclosure Authorized Crowding in the Private Sector: Nigeria’s Path to Faster Job Creation and Structural Transformation October 2020 About IFC IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, [visit www.ifc.org](visit www.ifc.org) © International Finance Corporation 2020. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 [www.ifc.org](www.ifc.org) The material in this report was prepared in consultation with government officials and the private sector in Senegal and is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The findings, interpretations, views, and conclusions expressed herein are those of the authors and do not necessarily reflect the views of the Executive Directors of the International Finance Corporation or of the International Bank for Reconstruction and Development (the World Bank) or the governments they represent. This publication uses U.S. spelling. All mentions of dollars refer to U.S. dollars, unless otherwise indicated. All data are current as of February 2020 Cover Photos: Yosef Hadar, Arne Hoel / World Bank, LAPO, [Santos Akhilele Aburime / Shutterstock.com](Santos Akhilele Aburime / Shutterstock.com) ACKNOWLEDGMENTS This report was prepared by a core team that includes Olasupo Olusi (co-task team lead and senior economist), Denny Lewis-Bynoe (co-task team lead and senior economist), Anita Okemini (private sector development specialist), and Helen Akanisi (consultant). Other team members include Emilija Timmis (economist), Nneamaka Okechukwu (private sector specialist), Ubong Awah (senior financial sector specialist), Jonathan Gigin (senior financial sector specialist), Lindsey Tan Lim (financial sector specialist), Robert Homans (consultant), Sharon Onyango (financial sector specialist), Grace Ogola (financial sector specialist), Sara Nyman (senior economist), Jakob Engel (economist), Yulia Vnukova (consultant), Ayobambo Salami (investment officer), Ugo Amoretti (senior strategy officer), Muhammad Wakil (energy specialist), Wayne Omonuwa (consultant), Stefan Apfalter (senior evaluation officer), Farhad Ahmed (senior transport specialist), Khairy Al-Jamal (senior water supply and sanitation specialist), Mary Agboli (senior private sector specialist), Olumide Okunola (senior health specialist), Edda Ivan Smith (senior social development specialist), Victoria Stanley (senior land administration specialist), David Ivanovic (senior private sector specialist), Teleola Kola-Edun (consultant), Adetunji Oredipe (senior agriculture economist), Ibrahim Adamu (country officer); Jacob Adeyemo (consultant), Olumide Taiwo (consultant), Ifeoma Johnson (program assistant), Oluwatoyin Jinadu (team assistant), and Irene Marguerite Nnomo Ayinda-Mah (program assistant). The team acknowledges the guidance of Mona Haddad, Rachid Benmessaoud, Shubham Chaudhuri, Kevin Njiraini, Eme Essien, Alejandro Alvarez de la Camp

FAQs

What core problem does the report address for Nigeria’s private sector?

The report focuses on how “crowding in” the private sector can support faster job creation and structural transformation in Nigeria.

How does the report characterize Nigeria’s private sector and productivity levels?

It highlights the predominance of micro, small, and informal firms and finds low productivity prevalent across sectors.

Which constraint areas does the report analyze as limiting private-sector growth?

It examines weak macroeconomic and financial policy frameworks, infrastructure deficiencies, and other barriers including competition policy weaknesses, insecurity, corruption, human capital and skills constraints, health outcomes, and land administration problems.

Jul 19, 2026

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