Nigeria must urgently reform its power sector, strengthen capital markets, and overhaul public institutions if it hopes to transition from widespread poverty to sustainable prosperity, economic experts have said.

Speaking at the Paul Alaje colloquium in Abuja at the weekend, a professor of capital markets at Nasarawa State University, Uche Nwaleke, stressed that Nigeria’s low electricity generation, which is less than 5,000 megawatts, is a major constraint on growth.

In contrast, South Africa produces about 40,000 megawatts for only 65 million people. The varsity don also raised concerns about Nigeria’s weak capital market performance.

“The country’s equity market capitalisation remains below 40 per cent of GDP, far lower than South Africa’s nearly $1 trillion market, more than three times its GDP. As of yesterday (last Friday), Nigeria’s market capitalisation stood at N93 billion, a figure described as “far too low for an economy of its size,” he said.

Despite the challenges, he acknowledged, the current administration has begun to address macroeconomic distortions through exchange rate reforms, revenue improvements and tax reform.

Uwaleke insisted that Nigeria must improve the quality of government spending, particularly in health, education, and social services, to build human capital. He argued that GDP growth alone is insufficient without investments that directly impact people.

“Education is an asset. Not just important, but central to national transformation,” he explained. On his part, Dr Paul Alaje examined poverty beyond the commonly cited $2.15 per day threshold.

Poverty, he argued, is a systemic condition rooted in lack of opportunity, weak institutions, and a cycle of low income, low savings, low investment and low productivity.

He said: “Potential is not poverty and resources are not development. Poverty persists when people lack the means and systems to realise their potential.”

Alaje referenced China and South Korea as examples of countries that escaped poverty through state-led development, heavy investment in skills and education, and strong institutional frameworks.