Tilewa Adebajo, CEO of CFG Advisory, calls for Nigeria to reform its trade and industrial policies to boost economic growth and close the output gap. He highlights that the current GDP growth of 3.4% is insufficient for Nigeria’s population and outlines the necessary steps to achieve sustained growth, exceptional productivity, and investment opportunities.
Tilewa Adebajo, CEO of CFG Advisory, emphasizes that Nigeria must revamp its trade and industrial policies to stimulate growth and close the output gap in its economy. Despite achieving a GDP growth rate of 3.4%, which Adebajo considers inadequate for a nation with a population of 200 million, he believes that substantial improvements in policy are essential for the country to realize its goal of becoming a Trillion Dollar Economy.
Adebajo advocates for sustainable double-digit growth, highlighting Nigeria’s youthful population, abundant human resources, and rich natural resources like oil and gas. He notes that although recent policy changes have stabilized key economic factors, such as exchange rates and fuel prices, further stability is necessary to encourage investment and growth within Nigeria’s economy.
In addressing the challenges within the manufacturing sector, which only achieved 4% nominal GDP growth in the previous year, Adebajo asserts the need for revised industrial policies to diminish import dependency and enhance local production. By implementing supportive measures for agriculture, manufacturing, and other investment sectors, Nigeria can increase its productivity and output potential.
Adebajo points to successful initiatives in sectors such as cement, fertilizer, and refining, calling on the government to create incentivizing environments for increased investments. He expresses concerns over rising national debt levels and proposes optimizing the capital structure through the divestment of certain joint venture assets as a means to enhance productivity.
Furthermore, Adebajo offers an optimistic outlook for Nigeria’s oil industry, urging that revenues from oil should be reinvested in diversifying the economy. He forecasts that with appropriate policy reforms, Nigeria could achieve over 6-7% growth this year; however, without significant changes, growth might stagnate around 4-4.5%. He concludes by underscoring the necessity of proactive policy decisions to foster economic prosperity in Nigeria.
In summary, Tilewa Adebajo of CFG Advisory stresses the urgent need for Nigeria to overhaul its trade and industrial policies to increase economic growth and close the output gap. By focusing on sustainable growth, reducing import reliance, and optimizing fiscal stability, Nigeria can enhance its productivity and move towards its goal of a Trillion Dollar Economy. Without decisive policy changes, the economy risks remaining at its current growth rate.
Original Source: www.cnbcafrica.com
