Nigeria’s problem is talent misallocation, not shortage — El-Rufai

A former Kaduna State governor, Nasir El-Rufai, has said Nigeria’s economic challenges are driven by misallocation of talent rather than a shortage of skills, capital or ideas.

In a statement shared on Facebook on Wednesday, El-Rufai said: “Nigeria’s growth problem is not primarily a shortage of talent, capital, or ideas. It is a problem of where our best talent goes—and why.”

He argued that skilled Nigerians are drawn to sectors offering the highest immediate returns, particularly where small differences in ability yield large rewards.

“People do not wake up intending to harm their country. They respond rationally to incentives,” he said.

El-Rufai cited economic data to support his position, noting that GDP growth stood at about 4.1 per cent in 2024, while GDP per capita remained around $1,084.

He added that informal employment accounts for about 93 per cent of the labour force, with a tax-to-GDP ratio of 8.2 per cent.

El-Rufai said: “These numbers are not abstract.

“They describe an economy where scale is risky, visibility attracts predation, and long-term investment struggles to compete with short-term access.”

He warned that the diversion of talent away from productive sectors weakens long-term growth.

He said: “When the brightest minds are pulled away from production, the quality of entrepreneurship falls, technological progress slows, and the economy’s long-run growth rate declines.”

El-Rufai pointed to structural barriers such as unreliable power supply, port delays and limited wage employment as constraints on business expansion.

He, however, noted areas of progress, citing growth in non-oil exports including cocoa, fertiliser, cashew and processed agricultural products.

“When incentives align—even partially—Nigerian firms can compete and scale,” he said.

He proposed reforms aimed at prioritising productive enterprise, including reducing discretionary government control, ensuring predictable and digital rules, enforcing property rights and supporting business growth.

Concluding, he said: “Nigeria’s future does not hinge on slogans, nor on personalities.

“It hinges on who wins in our economy.

“If the system rewards producers over extractors, growth will follow—rapidly and durably.

“Nigeria does not lack talent.

“Nigeria must reallocate it.”