IMF hinges Nigeria’s 3.1% economic growth outlook on stronger reforms

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THE International Monetary Fund (IMF), says achieving Nigeria’s projected 3.1 percent economic growth outlook for 2024 is dependent on implementation of stronger reforms.

According to the News Agency of Nigeria (NAN), Dr Christian Ebeke, IMF Resident Representative, said this at the Lagos Chamber of Commerce and Industry (LCCI) International Business Conference and Expo 2024 with the theme: “Invest Nigeria”, on Tuesday in Lagos.

Ebeke said that for the country to grow slightly from the 2.9 percent rate of 2023, further reforms on governance and business regulations were needed.

He said that such reforms would transform its growth momentum into something more durable.

He, however, said that the country had recorded progress in its credit market, as well as financial and external sectors.

“Insecurity, tight financial conditions, multiple taxes, insufficient power and corruption are foremost constraints identified by businesses.

“What comforts the IMF is that these issues can be addressed by the Nigerian government, and they are currently being addressed through reforms by the Federal Government.

“And we are encouraged by the fact that these issues can be reversed,” he said.

He said that Nigeria should close the structural gaps like India, by reducing governance and business regulation bottlenecks by 25 percent.

According to him, if that is done, the Gross Domestic Product (GDP) output can be lifted by 6.4 percent in the next three years.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, said that Nigeria’s strategic location and abundant resources presented vast investment opportunities, particularly in the marine and blue economy sector.

Oyetola said that in spite of existing challenges, government was committed to creating an enabling environment to foster economic growth to attract significant investments.

He highlighted some of government’s incentives designed to drive investment in the marine and blue economy sector to include tax exemptions for businesses operating in free trade zones, and infrastructural support.

He added that government had provided new export opportunities for the marine sector under the Guided Trade Initiative (GTI) of the African Continental Free Trade Area (AfCFTA), the Cabotage Vessel Financing Fund (CVFF) among others.

“Our commitment to the marine and blue economy is demonstrated through ongoing port rehabilitation and modernisation projects.

“To boost investment, the Nigerian government has introduced a wide range of incentives, including tax reliefs, trade zone benefits, infrastructure development, and financial support.

“I encourage the business community and investors to take advantage of such incentives to contribute to Nigeria’s economic development and be part of Africa’s promising future,” he said.

Governor Babajide Sanwo-Olu of Lagos State said that the state, being Africa’s economic hub, offered a conducive business environment, a strategic location, vast market, and pool of energetic talents.

Sanwo-Olu said that his administration had implemented and continued to implement policies and initiatives to attract investments, create opportunities, and drive growth.

He said that one key area of focus for the state was infrastructure development.

He said that the state was upgrading and expanding transportation and logistics networks, telecommunications, healthcare, education and digital ecosystem infrastructure.

According to him, the projected growth will not happen without a solid foundation of infrastructure that is able to keep ahead of our rapidly-growing population.

“As one of Africa’s startup capitals, we are specially keen to invest in digital infrastructure to power the innovative ideas of our people.

“Agriculture and food security are also priorities, in line with a national focus on these areas.

“Lagos may be the state with the smallest landmass in Nigeria.

“But I can boldly say that our land disadvantage is more than offset by the boldness with which we are embracing the boundless opportunities in processing, value-addition and logistics.

“This is why we are building Africa’s largest food logistics hub, here in Lagos,” he said.

The governor said that when completed, the hub would be able to hold enough food to supply Lagos for 90 days in the event of shortages.

He said that it would serve millions of farmers, traders and other players in the agricultural value chain.

“In addition, we are developing our tourism and entertainment sector with various investments in hospitality, leisure, and cultural infrastructure, to showcase the best of Lagos and Nigeria.

“We will continue to roll out incentives for investors.

“From tax breaks and waivers, to streamline regulatory processes, and a judicial system that is competent, efficient and guarantees the sanctity of contracts and property rights,” he said.

Mr Gabriel Idahosa, President, LCCI, said that the conference was pivotal to Nigeria’s journey towards stabilising the economy and driving sustainable economic growth and development.

Idahosa said that the event was a unique opportunity to explore new avenues for investment, foster innovative partnerships, and chart a course toward a more prosperous future for Nigeria and the African continent.

He said that Nigeria, blessed with vast resources and an entrepreneurial spirit, was home to the largest economy in Africa, a burgeoning middle class, and a youthful population eager to contribute to the global economy.

“To fully harness the nation’s potentials, there must be an enabling environment to support business growth, encourage innovation, and ensure that local and international investors remained confident of their investments.

“We have noticed government’s commitment to making Nigeria a preferred destination for global investors.

“We are actively engaging with the government in implementing policies that promote ease of doing business, improve infrastructure, and enhance security, ” he said.

“We also see the government embarking on bold reforms in various sectors, including agriculture, energy, foreign exchange markets, and technology, to further diversify our economy and reduce our reliance on oil.

“We urge the government to create a policy and regulatory environment to attract foreign investments into building factories in Nigeria to manufacture the many products we import today,” he said.

Meanwhile, Ambassadors to countries such as Belgium, Germany, Israel, Bulgaria, India, Ireland, Kenya and Bangladesh, affirmed their commitments to deepening partnerships with Nigeria across several sectors of its economy in mutually beneficial ways.