April 26, (THEWILL) — Nigeria has lost more than $76 billion attempting to run government-owned enterprises over the past decades, according to a report presented by the Alliance for Economic Research and Ethics.

The report was presented by the organisation’s chairman, Dele Kelvin Oye, during the 2026 Vanguard Newspaper Conference, where he argued that the persistent failure of state-owned enterprises underscores the need for the government to withdraw from operating businesses and instead focus on regulation and policy facilitation.According to the report, the estimated $76 billion loss reflects funds sunk into failed or underperforming national projects, including the long-stalled Ajaokuta Steel Company, government-owned refineries, the defunct Nigerian Telecommunications Limited (NITEL), and the aviation sector.

Oye noted that while over $8 billion was spent on the Ajaokuta Steel project alone, failed refinery rehabilitation efforts accounted for about $43 billion, NITEL consumed $5.3 billion, while the aviation sector recorded losses estimated at $20 billion.Oye maintained that the continued attempt by governments to run commercial enterprises has repeatedly produced costly failures.

According to him, government institutions are structurally designed to regulate markets, not compete within them. “If Nigeria is to translate GDP growth into actual inclusive growth, we must address a fundamental structural flaw: our government insists on being in business,” he said.“The private sector cannot be government, and government cannot be the private sector. This is not ideology; it is institutional logic. When the government tries to operate businesses, disaster follows.”

One of the most prominent examples cited in the report is the Ajaokuta Steel Company.Originally conceived as a strategic industrial project, the steel complex has yet to produce commercial steel decades after construction began.Between 1979 and 2015, Nigeria reportedly spent more than $8 billion on the project. Despite this, the facility remains largely inactive.Government spending has continued even in recent years. Between 2016 and 2024, the federal government reportedly spent ₦42.03 billion on the company, largely covering personnel and maintenance costs.

Oye described the project as a “symbol of governmental overreach,” noting that the facility has remained idle despite decades of public investment.Nigeria’s state-owned refineries were also highlighted as another major example of costly public-sector inefficiency. According to the report, Nigeria spent more than ₦11.35 trillion (about $25 billion) on refinery rehabilitation over the past decade.

In 2021, the Federal Executive Council approved $1.5 billion for the rehabilitation of the Port Harcourt refinery, alongside additional allocations for the Warri and Kaduna refineries.

Despite these expenditures, the refineries remain largely inactive, prompting investigations by the National Assembly into approximately $18 billion spent on turnaround maintenance. The report also cited the collapse of Nigerian Telecommunications Limited (NITEL) as another example of failed state enterprise management. NITEL underwent several unsuccessful privatization attempts between 2001 and 2009, including proposed sales to Investors International London Limited, Orascom, and Transcorp. After years of operational decline and mounting losses, the telecommunications giant was eventually sold in 2015, marking the end of a once-dominant national communications provider.

The aviation sector recorded similar challenges, with Nigeria’s national carrier collapsing amid government interference and weak policy support. While highlighting past failures, Oye also pointed to the livestock industry as a potential driver of Nigeria’s future economic growth. According to the report, Nigeria currently has about 20.9 million cattle, the largest herd in West Africa, alongside millions of sheep, goats, and poultry.

The livestock sector presently contributes about $32 billion to Nigeria’s GDP, supporting millions of livelihoods across the country. Under the National Livestock Growth Acceleration Strategy (NL-GAS) 2025–2035, the sector is projected to grow to $74 billion by 2035, with some estimates suggesting it could reach $94 billion if properly structured.

In March 2026, the Federal Government and private sector partners reportedly aligned on a $50 billion livestock investment initiative aimed at accelerating the sector’s growth. To unlock this potential, Oye proposed the adoption of a Catalyst Model, which assigns complementary roles to government and the private sector.

Under this framework, the government would focus on infrastructure, regulation, financing guarantees, and disease control, while private operators would handle production, processing, and commercial activities. “A signal is not a strategy,” Oye said. “What Nigeria needs is a clear architecture that enables the private sector to lead economic production.” He argued that successful livestock economies in countries such as New Zealand, Uruguay, Turkey, Kenya, and Ethiopia demonstrate the effectiveness of public-private collaboration rather than government monopoly.

Oye concluded that macroeconomic stability alone would not deliver inclusive growth unless Nigeria reforms its economic structure. He noted that despite improvements in macroeconomic management under the administration of Bola Tinubu, poverty remains widespread, with over 139 million Nigerians estimated to be living in poverty. According to him, achieving inclusive growth will require compelling banks to increase lending to the real sector while limiting excessive investment in government bonds.

“Nigeria possesses the cattle, the land, the markets, and the private-sector ingenuity,” he said.
“What we need is a government wise enough to know that it cannot be the private sector, and brave enough to let the private sector thrive.”

credit: thewillnews.com