Tilewa Adebajo, CEO of CFG Advisory, urges for restructuring Nigeria’s trade and industrial policies to enhance GDP growth, currently at 3.4%, for a population of 200 million. He emphasizes the necessity for sustainable growth and investment in manufacturing, agriculture, and other critical sectors to close the output gap and aim for a Trillion Dollar Economy.
Tilewa Adebajo, CEO of CFG Advisory, posits that Nigeria must revamp its trade and industrial policies to achieve significant economic growth and close its output gap. He asserts that the current GDP growth rate of 3.4% is insufficient for the country’s large population of 200 million, and reforming these policies is essential for targeting a Trillion Dollar Economy.
During an interview, Adebajo emphasized the necessity of sustainable double-digit economic growth, leveraging Nigeria’s youthful demographic and natural wealth, including oil and gas. He pointed out the critical role of maintaining stability in economic factors like the exchange rate and fuel subsidies, which is vital for fostering investment and growth.
Discussing the manufacturing sector’s stagnation, which experienced only 4% nominal GDP growth, Adebajo called for a refreshed industrial policy aimed at decreasing import dependency while promoting local manufacturing. He underlined the importance of crafting supportive policies for various sectors such as agriculture and manufacturing to enhance productivity and economic output.
Adebajo pointed to successful industries such as cement, fertilizer, and refining as models for growth, urging the government to provide incentives that attract investment into these key sectors. He stressed that deliberate policy initiatives and financial incentives are crucial to stimulating economic growth and productivity.
The interview also addressed fiscal stability, with Adebajo voicing concerns over Nigeria’s rising debt levels and the need to optimize its capital structure. He suggested divesting some joint venture assets to manage debt and establish a stronger foundation for productivity moving forward.
Expressing optimism about the oil sector’s potential, Adebajo recommends reinvesting oil revenues into diverse sectors to mitigate risks and foster a more resilient economy. He concludes by forecasting that with appropriate policies, Nigeria can achieve growth rates of 6-7%, though failure to enact these changes may result in stagnation at 4-4.5%.
Tilewa Adebajo advocates for the overhaul of Nigeria’s trade and industrial policies to stimulate growth and close its current output gap. He highlights the need for sustainable, double-digit economic growth driven by proactive policies and investment support. Without these changes, Nigeria risks continued suboptimal growth rates.
Original Source: www.cnbcafrica.com
