Sure, we vote. Sometimes. We have multiple political parties. We’ve transitioned from military rule to civilian government. But democracy was never meant to be just about political rituals. At its heart, democracy promises freedom, dignity, and opportunity. It is not just to speak or vote, but to thrive economically.

And that’s where Nigeria needs urgent and serious attention.
While democracy has made limited gains in governance structures, it has largely bypassed the economy. Too many entrepreneurs are trapped in a web of bureaucratic red tape, erratic policies, inflation, and unreliable infrastructure. Career professionals face stunted mobility, underemployment, and wage stagnation despite degrees and drive.

This week we are making a provocative argument that without economic freedom for the most of us, democracy is incomplete for all of us. And for Nigeria to fulfill its democratic promise, we must place entrepreneurs, job creators, and innovators at the center of national development; not as political ornaments, but as economic engines.

What Is Economic Freedom, and Why Does It Matter for Democracy?
Economic freedom means individuals and businesses have the right to:
• Choose how they work, produce, consume, and invest
• Access and protect property and capital
• Operate with minimal interference from government
• Engage in trade without undue restriction
Countries with higher levels of economic freedom consistently rank higher in democratic stability, income levels, innovation, and quality of life.
Nigeria has the population (220M), resources (oil, gas, arable land), and youth (median age: 18.1). But it remains one of the most difficult countries in the world to start and scale a business. This contradiction undermines not only the economybut democracy itself.When citizens are economically trapped, they become politically disengaged. Because why vote if your circumstances don’t change?
Entrepreneurship is the Heartbeat of Democratic Economies
In democratic nations, entrepreneurs are not just wealth creators; they are freedom creators. By building alternatives to state monopolies, generating employment, and innovating solutions to social problems, they expand what’s possible for society.
In 1776, the same year America declared independence, Adam Smith published The Wealth of Nations, linking economic choice to political liberty. His thesis? Free people must be able to choose their economic destiny.That truth still holds.
In Estonia for example, entrepreneurshiphelped solidify democracy by delivering prosperity.After breaking from the Soviet Union, Estonia launched radical reforms to simplify business registration, digitize government, and encourage startups. In less than 20 years, it became Europe’s digital hub, with over 1,000 startups—including Skype.
“Democracy Without Prosperity Is an Empty Promise”
Nigerian Entrepreneurs are in a Straitjacket
Nigerian entrepreneurs are not lazy. They are not risk-averse. They are fighting an uphill battle against a system that frustrates initiative. The barriers to Economic Freedom have put Nigerian Entrepreneurs in a Straitjacket
Key challenges include:
• Overregulation: Multiple taxes, agency fees, and compliance demands (e.g., NAFDAC, SON, CAC, FIRS, ARCON, LIRS etc).
• Policy Flip-Flops: Sudden currency devaluations, import bans, and subsidy removals with no warning.
• Infrastructure Gaps: Poor electricity supply, bad roads, and unreliable broadband.
• Funding Bottlenecks: Lack of access to affordable loans or venture capital.
Data Snapshot
• Nigeria ranks 131st out of 190 in the World Bank’s Ease of Doing Business Index.
• Over 70% of SMEs die within 5 years, largely due to systemic constraints (PwC Nigeria, 2023).
• More than 60% of youth-run businesses cite policy uncertainty as their biggest obstacle.
Amaka, a fashion entrepreneur in Onitsha, paid local government tax, environmental levy, sanitation fee, signage permit, trader’s permit, market union dues, and a daily kiosk fee. None came with official receipts. She closed her business after 18 months.This is not democracy. It’s economic suffocation.

When Democracy Ignores Entrepreneurs, It Starves the Nation
In 2023, Nigeria recorded an unemployment rate of 33%, with youth unemployment exceeding 40%. These are the same young people who stormed the streets during #EndSARS—angry not just at police brutality, but at economic stagnation.

A government that fails to empower its entrepreneurs cannot sustainably employ its youth. Public jobs are limited. Oil revenue is volatile. Only private-sector growth, led by MSMEs, can absorb our population boom. We need young people to participate in the electoral process. However, unemployed youth will become disillusioned voters.

History presents us withparallels on how economic hardship leads to democracy breakdown.In the 1930s, Germany recorded massive inflation and unemployment post-WWI which gave rise to authoritarianism. In the early 2000s despite its oil wealth, economic mismanagement turned Venezuela from democracy to dictatorship.The lesson is simple: starve people of opportunity, and democracy collapses into desperation.

If Nigeria wants to secure its democratic future, it must unlock the economic potential of its peoplenot through handouts, but through freedom. Therefore, Entrepreneurs must stop waiting for rescue and begin shaping the narrative. Professionals must stop whispering about policies in the breakroom and start organizing for reform. Governments must shift from being roadblocks to being runways for business growth.
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