Amadi links Nigeria’s debt crisis to low productivity

An Associate Professor and Director of the Abuja School of Social and Political Thoughts, Dr Sam Amadi, has attributed Nigeria’s growing debt burden to weak productivity and structural inefficiencies in the economy, warning that fiscal challenges are rooted in deeper systemic failures.

Amadi, who is also a former Chairman of the Nigerian Electricity Regulatory Commission, made the remarks during a keynote address at the inaugural webinar organised in Abuja by the Think Tank for Sustainable Development.

He said Nigeria’s debt problem is fundamentally a revenue and productivity issue, arguing that declining output levels have weakened the country’s ability to generate sustainable income for development financing.

According to him, persistent insecurity, weak institutions, and low production capacity have combined to create what he described as a “perfect storm” undermining economic stability and growth.

He stated that Nigeria’s economy remains largely unproductive, noting that declining industrial output and rising insecurity continue to erode state capacity and long term planning effectiveness.

Amadi further criticised the absence of a coherent national development strategy, saying that a lack of elite consensus has prevented the country from pursuing consistent economic reforms. He added that governance decisions are often reactive, addressing symptoms rather than structural causes.

He also pointed to institutional and structural barriers, including land ownership systems, which he said discourage investment and limit access to productive assets. He argued that these constraints continue to hinder private sector expansion and economic diversification.

The former regulator said Nigeria’s political system has increasingly failed to produce leadership capable of driving meaningful transformation, describing the current trajectory as one that does not consistently deliver development outcomes.

He warned that worsening economic conditions are deepening poverty and weakening the relationship between citizens and the state, describing the situation as a broader crisis of governance and citizenship.

Despite the challenges, Amadi called for a shift towards regional development strategies that allow different parts of the country to leverage their unique strengths. He argued that decentralised economic planning could improve productivity and stimulate inclusive growth.

He maintained that countries with diverse populations have achieved stronger development outcomes by encouraging regional innovation and resource based growth models, a framework he said Nigeria could adopt.

Amadi stressed that sustainable development would require rebuilding trust between government and citizens, strengthening institutions, and ensuring accountability in governance.

He concluded that meaningful progress would depend on deep institutional reforms rather than incremental adjustments, adding that Nigeria must be willing to rethink its governance structures from the foundation.

His remarks come amid rising public debt, which reached N159.28tn as of December 2025, according to the Debt Management Office, reflecting continued borrowing at both domestic and external levels.