Nigeria’s efforts at economic recovery and growth will remain snail-paced if economic diversification and necessary reformative policies are not adopted in the medium to long term.
Toki Mabogunje, president, Lagos Chamber of Commerce and Industry (LCCI), stated this at the chamber’s quarterly press briefing held on Tuesday.
Mabogunje said following the disruptions occasioned by the COVID-19 pandemic, the economy has started showing signs of recovery 0.51 percent in real terms in the first quarter of 2021.
She said that major risks to economic growth include its continued reliance on oil, heightened security concerns, weak confidence of investors, and weak commitment to key policy, regulatory and institutional reforms.
“Over-reliance on crude oil for fiscal revenue and forex earnings will continue to expose the economy to fluctuations in the oil market even as the country lacks adequate buffers to absorb external shocks. This poses serious external stability risks.
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“Accelerating the pace of recovery requires both fiscal and monetary policymakers to be well-coordinated in promoting growth-enhancing and confidence-building policies that would encourage private and foreign capital inflows into the economy,” she said.
She said that increased inflow of investment is also critical to achieving economic growth, and urged that the federal government implement policy reforms that will attract investments and ease the business environment, particularly in addressing insecurity and multiple exchange rate windows in the country.
“The environment must support businesses, preserve investments and create job opportunities. Genuine commitment in implementing key reforms would not only stimulate output growth but would also put the nation on the path of macroeconomic stability over the medium-term,” she said
Speaking on Nigeria’s participation in the African Continental Free Trade Area (AfCFTA), the LCCI president while it may seem quiet in public view, participatory businesses in Nigeria are carrying out a lot of background and foundational activities.
She mentioned that a lot of issues need to be addressed such as the non-tariff barriers between countries, logistics, and other challenges.
“The national action committee on the trade agreement is increasing the awareness of the trade agreement at national and subnational levels to increase participation,” she said.
