FG pushes new policy model to drive growth through private sector

The Federal Government is moving to deepen the role of the private sector in shaping and executing economic policy, introducing a new framework that positions businesses not just as stakeholders but as co-drivers of growth.

Taiwo Oyedele, minister of finance and coordinating minister of the economy, unveiled what he described as a shift from traditional public-private partnerships (PPP) to a broader “public policy–private partnership” model, aimed at aligning government reforms more closely with real sector outcomes.

“We are familiar with PPP, public-private partnership, but I think we also need public policy–private partnership,” Oyedele said at a 2026 Private Sector Outlook Forum organised by the Nigeria Economic Summit Group (NESG).

The move signals a shift in the government’s approach to economic management, where policy success will increasingly depend on collaboration with the private sector, not just implementation by the state.

The new framework comes as Nigeria transitions from a phase of aggressive economic reforms to one focused on consolidation and measurable outcomes.

According to Oyedele, while reforms have helped stabilise key macroeconomic indicators, including exchange rate alignment and improved revenue performance they are yet to translate into broad-based economic gains.

“Reforms on their own do not create growth. We need investment at scale,” he said, adding that investment decisions are driven less by policy announcements and more by confidence in consistent and predictable implementation.

This has forced a rethink of the government’s strategy, shifting focus from policy design to execution where private sector participation becomes critical.

Supporting this position, Abdul Kamara, director-general, Nigeria office of the African Development Bank (AFDB), said the success of Nigeria’s reform agenda would depend heavily on the strength and participation of the private sector.

“No reform consolidation can succeed without a strong, vibrant and productive private sector,” Kamara said, explaining that investment decisions respond more to policy credibility and consistency than to reform announcements.

He added that while Nigeria has made significant progress in stabilising macroeconomic fundamentals, the next phase must focus on translating those gains into tangible outcomes for businesses and households.

“Macroeconomic stability is not an end in itself, it is a foundation for growth,” he said.

Under the “4Ps” model, businesses are expected to play a more active role in shaping outcomes through investment, compliance, and engagement with policymakers.

The framework effectively expands the responsibility of the private sector from reacting to policies to actively influencing how they are implemented and sustained.

Oyedele noted that no government, regardless of capacity, can drive growth alone, making alignment between public policy and private investment a central requirement for the next phase of economic progress.

The emphasis on deeper collaboration also reflects growing concern within government and industry over weak investment response despite ongoing reforms.

Businesses continue to face structural constraints, including high operating costs, limited access to affordable financing, and regulatory inefficiencies factors that have slowed the transmission of macroeconomic gains to real sector performance.

At the forum, the NESG highlighted a persistent gap between improving macroeconomic indicators and conditions at the firm level, noting that many businesses remain constrained by what it described as a “productivity ceiling.”

The introduction of the 4Ps model suggests a broader redistribution of responsibility for economic outcomes, with both government and the private sector expected to play more coordinated roles.

For policymakers, this implies a greater need for consistency, transparency, and follow-through. For businesses, it signals increased expectations around long-term investment, formalisation, and governance.

As Nigeria enters what officials describe as the most critical phase of its reform cycle, the success of recent policy changes may now depend less on their design and more on how effectively they are jointly executed.