Report Warns Capital System Misallocating Growth Resources

A recent study by the International Monetary Fund warned that the current capital‑allocation system is diverting investment away from high‑growth sectors and regions. It finds that tax incentives, regulatory biases and short‑term profit pressures cause funds to flow into low‑productivity assets—such as real‑estate speculation and fossil‑fuel extraction—while innovative industries like clean technology, advanced manufacturing, and digital services remain under‑financed. The report recommends reforming tax policy, improving transparency in financial markets, and aligning corporate governance with long‑term productivity goals to better channel capital toward sustainable economic growth. Views Nigeria