Peterside Blames Corruption, State Capture for Nigeria’s Economic Challenges
Economist and founder of Stanbic IBTC Bank, Atedo Peterside, has attributed Nigeria’s prolonged economic difficulties to entrenched corruption and what he described as “state capture” — a situation where a few powerful individuals manipulate public institutions for personal gain.
Speaking at the 2025 Nigeria Economic Policy Forum held in Lagos over the weekend, Peterside said that despite the country’s vast human and natural resources, its economy continues to underperform because key sectors remain controlled by vested interests that resist transparency and reform.
“The biggest problem confronting Nigeria is not a lack of ideas or policies,” he said. “It is that those benefiting from the current system of corruption and state capture do not want change. They are comfortable with inefficiency because it serves their narrow interests.”
Peterside cautioned that no economic policy, regardless of design, would deliver sustainable results without confronting these deep-rooted governance failures. He explained that state capture occurs when political and economic elites influence government decisions, regulatory bodies, and public resource allocation for private benefit, undermining the public good.
He lamented that such capture has weakened key sectors — including oil and gas, power, and infrastructure — while implementation of economic plans such as Vision 2020 and the National Development Plan has been repeatedly derailed by rent-seeking and corruption.
Peterside also cited fuel subsidy fraud and opaque public spending as examples of how corruption drains national resources and widens inequality.
“We cannot continue to spend billions subsidizing inefficiency while the majority of our citizens live in poverty,” he said. “The government must prioritize accountability and transparency as the foundation of economic recovery.”
He urged President Bola Tinubu’s administration to show political courage by dismantling monopolies and strengthening the independence of institutions such as the judiciary, anti-corruption agencies, and public procurement systems.
“Institutions must be stronger than individuals,” Peterside said. “Until rules are clear and enforced, investors will continue to see Nigeria as a high-risk destination.”
He further noted that Nigeria’s inflation, exchange rate volatility, and declining foreign investment stem from deeper governance failures. To reverse the trend, he called for merit-based leadership, economic diversification, and decentralization.
In his closing remarks, Peterside urged citizens to demand accountability from public officials, stressing that silence enables corruption.
“The real power lies with the people,” he said. “If Nigerians insist on transparency, fairness, and merit, the system will have no choice but to adjust.”
Economists and policy analysts at the event agreed that tackling corruption and state capture is critical to restoring investor confidence and driving inclusive, sustainable growth.
