Investors back Nigeria's reforms as citizens want results

The recent summit centered on economic growth that benefits all Nigerians. Organizers aimed to transform economic stability into quality jobs for Nigeria's youthful population, increased productivity, and shared prosperity. Investors demonstrated their faith in the nation's reforms. J.P. Morgan, the leading investor, expressed its intention to expand its presence in Nigeria due to the progress made in reforms over the past three to four years and the Central Bank of Nigeria's (CBN) effective regulatory framework.

The CBN granted a preliminary approval to JPMorgan Merchant Bank Nigeria Limited, pending the acquisition of a final license.

Chevron also highlighted the improved investment climate as a result of the Petroleum Industry Act and presidential directives. The company is currently exploring shallow-water assets and preparing additional wells at its Agbami deepwater field. However, Chevron emphasized that investors must see these policies as lasting laws, given the long-term nature of oil and gas projects.

The telecom sector faces a challenge in capacity, due to the growing demand for data. Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria, called for consistent policies and better protection of infrastructure, as roadworks often damage fiber cables. The digital economy and e-government bill have reached the third reading and could be passed before the end of the year.

Plans are also underway to develop a 90,000-kilometer fibre network, including regions with limited commercial returns.

Despite investor enthusiasm, citizens remain skeptical of the tax system. The NESG Tax Perception Survey 2026, which polled 18,000 households and 9,097 firms across all 36 states and the Federal Capital Territory, found that 74.4% of households accept the government's authority to collect taxes. However, trust in tax authorities scored only 2.01 on a four-point scale.

Informal levies are a significant concern, with 67.2% of households paying non-state levies at least once, and 13.9% of firms claiming to have paid illegal fees. Awareness of tax laws varies greatly, with 80% of firms reporting awareness versus 40% of households.

Panelists stressed that fairness and visible results are as crucial as enforcement. Yinka Babalola of the International Budget Partnership advised Nigerian authorities to publish yearly data on tax waivers and demonstrate that wealthy individuals and large firms are footing their share. Vahyala Kwaga of BudgIT argued that budgets often appear to be target-setting exercises rather than genuine assessments of community impact. He advocated for the establishment of tax ombudsmen at state level to resolve disputes.

The Joint Revenue Board revealed that 20 states have adopted the harmonized tax framework, while 17 are currently reviewing it. Only 15 of the 37 subnational tax authorities are fully autonomous, while seven have no autonomy. At the final press briefing, summit organizers emphasized that the debate had evolved. After seven years of tracking tax reform, they noted that recommendations have become law.

The next step involved ensuring that federal, state, and local governments implement these reforms in a manner that citizens can perceive as tangible progress. The Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, stressed that growth must reach communities. Agriculture, he argued, presents the greatest opportunity, as at least 42 million households participate in farming, fishing, or animal husbandry, with around 90% of them lacking the necessary resources and techniques.

Bagudu announced that the government would use public funds to mitigate risks for private investors and had mobilized over $1 billion for skills and early childhood nutrition, as well as consumer credit, mortgage, and credit guarantee schemes. He expressed optimism for accelerated growth that includes more people by the following year.

The NESG committed to tracking progress through five promises for the year ahead, including accountability, evidence-based research, expanded reach to states, bankable projects, and the inclusion of more sectors.