Key Points
• Economists call for higher crude oil production and stronger measures against disruptions to output.
• They urge greater government support for MSMEs and increased investment in agriculture.
• Nigeria’s economy grew by 4.43 per cent in Q2 2026, while crude production reached 1.72 million barrels per day.
Main Story
Economists have urged the Federal Government to build on Nigeria’s recent economic growth by increasing crude oil production, strengthening Micro, Small and Medium Enterprises (MSMEs) and investing more in agriculture and its value chains.
The economists made the recommendations in separate interviews with the News Agency of Nigeria (NAN) in Lagos on Tuesday.
Prof. Sherifdeen Tella of the Department of Economics, Babcock University, said increasing crude oil output would provide further support for economic expansion, particularly as international oil prices remain elevated.
He urged the government to tackle activities undermining crude production and adopt innovative measures to raise output.
Tella also called for an increase in Nigeria’s export quota and adequate crude supply to Dangote Refinery, saying this would support domestic refining and strengthen economic activity.
He also advocated increased government funding for agriculture and its value chain, including measures to reduce production costs and food inflation.
According to him, stronger agricultural production would contribute to food security and social stability while supporting broader economic growth.
Prof. Ndubisi Nwokoma of the Department of Economics, Caleb University, focused on the need to improve conditions for MSMEs, which he said continued to face a difficult operating environment.
He said government policies were benefiting larger companies and multinational firms more than smaller businesses, which remain important to domestic economic activity.
Nwokoma urged the government to reduce the cost of governance and redirect resources towards supporting MSMEs.
He cited the experience of the Asian Tiger economies, saying their development was partly driven by policies that promoted smaller businesses.
His recommendations come against the backdrop of stronger economic growth recorded in the second quarter of 2026.
The National Bureau of Statistics (NBS) reported that Nigeria’s real GDP grew by 4.43 per cent year on year in Q2 2026, compared with 4.23 per cent in the same quarter of 2025.
Crude oil production increased to 1.72 million barrels per day, its highest level since 2022.
Agriculture also recorded stronger growth, expanding by 4.39 per cent compared with 2.82 per cent in Q2 2025.
However, industrial growth slowed to 3.96 per cent from 7.46 per cent in the corresponding quarter, while services expanded by 4.60 per cent compared with 3.94 per cent a year earlier.
The Issues
The economists’ recommendations point to the need to strengthen the sectors that can translate economic expansion into wider domestic activity.
Higher crude production could increase oil sector output, while greater domestic crude supply to local refineries could support the downstream petroleum industry.
Agriculture remains important for food supply and prices, making investment across production, processing and other parts of the value chain relevant to efforts to contain food inflation.
For MSMEs, the economists identified the operating environment and access to government support as major concerns. Their argument is that stronger support for smaller businesses could broaden the benefits of economic growth beyond large firms and multinationals.
What’s Being Said
“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.” – Prof. Sherifdeen Tella
“More funds should be earmarked to subsidise agricultural production and decelerate food inflation.” – Prof. Sherifdeen Tella
“The government needs to reduce the rising cost of governance and re-channel such funds to the growth of the MSME sector.” – Prof. Ndubisi Nwokoma
What’s Next
The economists want the Federal Government and sub national authorities to increase support for agriculture, improve crude oil production and create a more favourable operating environment for MSMEs.
Tella also wants the government to increase Nigeria’s export quota and ensure adequate crude supply to Dangote Refinery.
Bottom Line
Nigeria’s 4.43 per cent Q2 growth was accompanied by stronger crude oil and agricultural output, but economists say sustaining the expansion will require deeper support for oil production, agriculture and MSMEs. They argue that broader investment in these areas can strengthen food security and spread economic activity more widely.
