Nigeria must shift from an output-based economic model to an asset-driven one to overcome its economic challenges, an economist, Dr Ayo Teriba, has said. He warned that failure to do so would worsen the country’s financial struggles, including liquidity crises and rising debt.

Speaking at the 2025 Economic Outlook of the Association of Corporate Treasurers in Nigeria (ACTN) in Lagos, Teriba noted that Nigeria possesses vast but underutilised assets that could attract significant foreign direct investment (FDI) if properly leveraged.

“The world no longer depends solely on production and exports for growth. Successful economies today are those that have effectively monetised their assets to attract investment. Nigeria must do the same to stabilise its economy and improve liquidity,” he said.

Teriba pointed out that many thriving nations have transitioned to financialisation – converting state-owned resources into investment opportunities. He cited Saudi Arabia’s transformation of its oil reserves into Aramco and the UAE’s development of Dubai into a global investment hub as models Nigeria should emulate.

He criticised Nigeria’s continued reliance on debt financing rather than asset monetisation, arguing that strategic sectors such as energy, railways, and telecommunications should be opened to private investment.

Teriba also cited the success achieved in the nation’s telecom sector, which attracted private capital without government borrowing, as proof of what could be achieved in other industries.

Therefore, he cautioned against overreliance on Chinese loans for infrastructure projects, noting that such deals often benefit China more than Nigeria.
“Chinese loans are structured as export transactions, meaning Nigeria pays for infrastructure using borrowed funds while China supplies the contractors, materials, and labour. This is unsustainable,” he said.

To address these challenges, he proposed shifting to asset-based financing through securitisation and the creation of a transparent investment registry for global investors.

“Instead of issuing Eurobonds or relying on loans, Nigeria should be offering asset-backed bonds and equity-linked instruments. Investors are willing to come in if we create the right structure,” he explained.

On the exchange rate, Teriba argued that increasing Nigeria’s foreign reserves through asset-backed investments would provide a lasting solution rather than temporary government interventions. He also urged states to leverage their resources rather than depend on federal allocations.

“Nigerian states have assets more valuable than entire economies elsewhere, yet they remain untapped. Governors must start thinking like asset managers, not just budget administrators,” he said.

In addition, he urged policymakers to act swiftly, stating that Nigeria’s economic future depends on making bold, strategic shifts. “Nigeria has a bright outlook, but only if we make the right choices. The time to transition to an asset-driven economy is now,” he said.

ACTN President Adeyinka Ogunnibi echoed Teriba’s call for innovative financial strategies, stressing that corporate treasurers play a crucial role in shaping sustainable economic policies.

“This year’s outlook underscores our commitment to advancing financial solutions that reposition Nigeria for growth,” he stated.