Founder of Stanbic IBTC Bank, Atedo Peterside has blamed Nigeria's persistent economic challenges on rampant corruption and what he described as “state capture” by a few powerful individuals who manipulate public institutions for personal gain.
Speaking at the 2025 Nigeria Economic Policy Forum held in Lagos at the weekend, Peterside said Nigeria's economy is underperforming despite its vast human and natural resources as key sectors remain controlled by vested interests that resist reforms and transparency.
“The biggest problem facing Nigeria is not a lack of ideas or policies,” he said. “It's that the people who benefit from the current system of corruption and state capture do not want change. They are comfortable with inefficiency because it serves their narrow interests.”
He warned that without confronting this rooted system, no economic policy – no matter how well designed – will produce lasting results. According to him, state capture manifests when political and economic elites influence government decisions, regulatory agencies, and resource allocation for personal gain rather than for the public good.
Peterside lamented that such capture has weakened Nigeria's development potential, especially in key sectors such as oil and gas, power and infrastructure. He said that while Nigeria has adopted several economic blueprints from Vision 2020 to the implementation of the National Development Plan, rent-seeking and corruption at the highest levels have continued to sabotage it.
He also cited the recurring issue of fuel subsidy fraud and opaque public spending as examples of how corruption drains national resources and increases inequality. “We cannot continue to spend billions in subsidies inefficiently as long as the majority of our citizens live in poverty,” Peterside said. “The government must prioritize accountability and transparency as the foundation of economic recovery.”
The economist called on the administration of President Bola Tinubu to show political courage by ending monopolies and implementing institutional independence, especially in anti-corruption agencies, the judiciary and public procurement processes. He stressed that rebuilding public trust requires not only punishing criminals but also ensuring systems that prevent corruption from re-emerging.
“Institutions must be stronger than individuals,” he said. “Until the rules of engagement are clear and enforced, both local and foreign investors will continue to view Nigeria as a high-risk area.”
Peterside further argued that the country's fiscal and monetary challenges, ranging from inflation and exchange rate instability to declining foreign investment, are symptoms of deeper governance failures. He stressed that Nigeria must focus on merit-based leadership, decentralization and economic diversification to break free from its cycle of dependency and inefficiency.
In his concluding remarks, Peterside urged citizens to take an active role in demanding accountability from public officials, warning that silence and complacency enable corruption to flourish. “The real power lies in the people,” he said. “If Nigerians insist on transparency, fairness and meritocracy, the system will have no choice but to adjust.”
Economists and policy analysts at the event echoed his views and said the fight against corruption must go beyond rhetoric to concrete institutional reforms. Many agreed that restoring investor confidence and pursuing inclusive growth will remain impossible unless Nigeria decisively deals with the twin evils of corruption and state capture.
