Industry stakeholders and sports analysts have urged the Nigerian government to step back from direct involvement in sports business and instead focus on fostering a conducive environment for Private Sector investment. Speaking at BusinessDay’s inaugural sports conference, Business of Sports in Nigeria: Unlocking Economic Potential, experts highlighted the country’s underutilised sporting potential despite its vast talent pool. Frank Aigbogun, publisher of BusinessDay, noted that sports contribute less than 0.5 percent to Nigeria’s GDP, far below global averages. He pointed to the economic impact of the English Premier League and the NBA, which generate billions for the UK and US economies, underscoring the financial potential Nigeria has yet to tap. The conference aimed to attract Investment and drive reforms that could make sports a major contributor to national economic growth.
Moreover, former Oyo State commissioner for youth and sports, Seun Fakorede, criticised the government’s deep involvement in sports administration, arguing that it lacks a structured approach to development. He advocated for stronger public-private partnerships to create an enabling environment for grassroots sports. Similarly, Olabisi Makanjuola, chairman of the Nigerian Bar Association’s Lagos branch, highlighted legal and regulatory hurdles that discourage investors. He called for sports-friendly Tax Policies and the establishment of tribunals to handle sports-related disputes efficiently. According to him, the uncertainty of Nigeria’s legal system is a major deterrent to foreign and local Investors looking to grow the sector.
Football clubs are struggling due to poor management.
Furthermore, the lack of professionalism in sports management was another pressing concern. Mozez Praiz, a broadcaster with SuperSport, observed that many Nigerian football clubs are run as political rewards rather than structured businesses. He emphasised the need for club administrators to develop proper business models and build fan engagement strategies to create sustainable Revenue streams. Without a strong connection between clubs and their supporters, he warned, the domestic sports industry would continue to struggle. Corruption, he added, remains a major hindrance, affecting the credibility and financial viability of many Nigerian clubs.
Former Nigeria Football Federation president, Amaju Pinnick, echoed concerns over inadequate funding and Infrastructure deficits. Represented by Temisan Okomi of Megaletrics, he lamented the Underdevelopment of Nigeria’s sports ecosystem despite the country’s immense talent. Pinnick cited a past instance where over ₦300 million was required to run a single local club, illustrating the financial challenges faced by sports administrators. While international organisations could support Nigeria’s sports industry through investment in infrastructure and sponsorship, he stressed that internal reforms are necessary before such partnerships can materialise. Without addressing corruption, mismanagement, and infrastructural gaps, he warned, Nigeria would struggle to position itself as a leading force in African sports.
Lack of funding contributes to the underdevelopment of Nigerian sports.
Nigeria’s sports industry holds immense economic potential, yet it remains underdeveloped due to a lack of clear policies and investments. While other nations have turned sports into multi-billion-dollar industries, Nigeria continues to grapple with outdated structures and insufficient funding. The reliance on government intervention rather than a business-driven approach has stifled growth, leaving the sector unable to compete globally. Without deliberate reforms, the country risks losing both talent and revenue to nations with better-developed sports ecosystems.
A major challenge facing the industry is the absence of a well-defined commercial model that attracts investors. Unlike in Europe and North America, where clubs and leagues are profit-driven entities, many Nigerian sports organisations lack financial sustainability. Sponsorship deals are scarce, and revenue generation remains weak due to poor branding and audience engagement. If clubs and sporting bodies adopt modern business practices, such as merchandising and digital media expansion, they could significantly increase their financial standing and fan base.
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Ultimately, addressing these issues requires a shift towards professionalism, transparency, and strategic investment. The government must prioritise creating an enabling environment for private sector participation, while sports administrators must adopt modern business practices to drive growth. Implementing sports-friendly policies, investing in infrastructure, and ensuring financial accountability will be crucial steps in revitalising the industry. By developing a sustainable business model, Nigeria can transform its sports sector into a significant economic contributor, generating revenue, creating employment opportunities, and positioning the country as a major player in the global sports economy.