NEC seeks accelerated transition from oil to non-oil economy

The National Economic Council (NEC) has called for accelerated transition from oil to non-oil economy through competitive manufacturing, export diversification, and private sector investment.

Vice-President Kashim Shettima, who is the Chairman of the council, made the call in his opening remarks, during the 156th NEC meeting and first in 2026, held virtually.

Shettima observed that while “global powers assert their interests with renewed confidence, commodity markets will remain volatile,” with oil prices, exchange rates, and capital flows frustrating the nation’s policies.

He noted that the current economic reality has reinforced the urgency of fiscal risk management and the need to reduce the nation’s economic and revenue exposure to oil.

According to him, the non-oil economy has emerged as the backbone of Nigeria’s growth story, accounting for about 96 per cent of the country’s GDP and is expanding at about 4 per cent.

“Services, agriculture, and other non-oil sectors are increasingly carrying the weight of the economy.

” More importantly, non-oil revenues now contribute nearly three-quarters of total government collections.

” This marks a significant, if gradual, departure from our historic dependence on volatile oil receipts.

” The task before us is to deepen this transition through competitive manufacturing, export diversification, and private sector investment,” he said.

Shettima acknowledged that while it was the first meeting of the council for the year 2026, the consequences of the choices made last year demand coherence, courage, and consistency in the new year.

“This moment in our journey calls for neither triumphalism nor despair. What it calls for is perspective.

“The Nigerian economy has travelled a difficult road over the past year, but it has not travelled it without progress,” VP said.

Shettima, who said that the nation’s economy witnessed significant growth in 2025, attributed the rapid growth to the visionary leadership of President Bola Tinubu.

“In 2025, our economy expanded by 3.9 per cent, the fastest rate of growth in over a decade.

“Quarter by quarter, this momentum was evident: growth strengthened from 3.13 per cent in the first quarter to 4.23 per cent in the second, before settling at 3.98 per cent in the third.

” This is the outcome of hard decisions taken in difficult circumstances, and this is not a surprise with a visionary like His Excellency, President Bola Tinubu, leading the charge.”

Shettima added that acceleration of economic growth must not be confused with adequacy.

He observed that “a growth rate of 3.9 per cent, while encouraging, is not sufficient to decisively reduce poverty, generate jobs at the scale our population demands, or lift per capita incomes in a way that ordinary Nigerians can feel.

“With population growth at about 2.6 per cent annually, this rate of expansion leaves us with little room to absorb inflationary pressures or external shocks. Our ambition, therefore, must be higher,” he added.

Our correspondent reports that after presentation on the economic priorities for 2026 by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the council resolved to deepen engagement with stakeholders to boost non-oil revenues.

The council has also approved the constitution of a committee on the implementation of the President’s directive on the actualisation of the legacy projects.

The committee is chaired by the Governor of Cross River State, while one governor from each sub-region will serve as member of the committee as follows: North West (Sokoto), North East (Gombe), North Central (Niger), South East (Abia), and South West (Lagos).

The Permanent Secretary of the Ministry of Budget and Economic Planning, Deborah Odoh, would serve as Secretary, while the Ministers of Works and Transportation will also serve on the committee.

The presentation highlighted key reforms implemented by the Tinubu administration, including targeted programmes that have removed distortions in the system, stabilised the economy and put Nigeria on the path of sustained recovery and prosperity.

The presentation also reflected the country’s current global recognition, which is reinforcing investor confidence in the economy projected to grow at 4.68 per cent in 2026.

The key priorities according to the Minister, include maintaining Nigeria’s economic competitiveness through sound governance, improved availability and affordability of food.

This, according to him, will ensure human capital development with improved social protection and timely payment of debt service, salaries and pensions.

Similarly, in its resolution, NEC noted and commended the Federal Government’s plans to unlock rapid and sustained job-rich growth, high-quality jobs, and entrepreneurship opportunities.

The council also resolved to dedicate a special session to address salient issues raised in the country’s food security efforts, particularly issues on agricultural productivity.

The highlights of other deliberations and resolutions at the NEC meeting were the update on account balances as at Jan 14.

The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, gave update to council on the following accounts; Excess Crude Account $535,823.39, Stabilisation Account N64,652,693,552.36 and the Natural Resources Account N97,369,382,081.96.