The Nigerian Economic Summit Group (NESG) has suggested critical areas of reforms that will drive significant improvement in the Nigerian economy in 2022.
Launching its Macroeconomic Outlook to 2022 in Abuja, the group said pre-pandemic narratives of growth, lack of inclusion and poor socioeconomic conditions in the country still persist.
According to the outlook, insecurity, foreign exchange shortages, declining foreign investment flows, sector rigidities, infrastructure deficits, unskilled labor, policy inconsistency, and regulatory bottlenecks are part of of many problems that affected the improvement of economic results.
“As we enter 2022, Nigeria has an opportunity to build on current growth performance by embarking on tough economic reforms that would remove constraints on expanding sectors of the economy and improve their ability to create more jobs and lift millions out of poverty. poverty,” the prospect said.
According to the nation’s bureau of statistics, Nigeria emerged from recession in the fourth quarter of 2020, posting its first growth in three quarters after the nationwide coronavirus-related lockdown was lifted.
The economy maintained its recovery momentum in 2021 as real Gross Domestic Product (GDP) expanded by an average of 3.2 percent in the first three quarters of the year.
The group pointed out that the elimination of the gasoline subsidy as stipulated in the new Petroleum Industry Law (PIA) would significantly affect all facets of the economy, in particular the welfare of households, the cost of business operations and government finances.
The group also said the completion and commissioning of the 650,000-barrel capacity Dangote Refinery is expected to reduce the import of refined fuel products and boost foreign exchange savings.
He said exchange rate volatility and pressure on commodity prices will persist while insecurity, if left unchecked, could discourage much-needed investment from entering the various sectors of the Nigerian economy.
The report also suggested critical reforms in areas that would drive significant improvement in Nigeria’s economic performance.
The group called for reforms in three main areas, including the long-awaited deregulation of the oil and gas sector and the removal of fuel subsidies; currency management; and specific sectoral reforms that can boost important stable investment flows such as Foreign Direct Investment in the economy.
He advised that the pace of reform needs to be accelerated for a number of reasons, including the rising rate of insecurity and social vices.
“The greater insecurity and social vices in various parts of the country are direct consequences of the social exclusion suffered by many citizens,” he said.
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“Therefore, the government cannot afford to delay implementing these reforms, as further delay could offset the gains from the recent rapid economic recovery. The urgency of now should be the watchword.
“The launch of the National Development Plan (2021-2025) provides a real starting point for the government to initiate reforms that can change the development paradigm in Nigeria.
Private sector development and sectoral growth are needed to drive inclusive development, he said, adding that the effectiveness of the plan hinges on the need for the government to provide a supportive business and political environment that sustains interests and trust in Nigeria. Economy.
“As the 2023 general election approaches, there is a possibility that the space to implement crucial reforms in Nigeria will be reduced.
“But the political elite must take into account that prioritizing the interests of the population must be at the top of their agenda, before and after the elections.
“This will not only reduce the existing trust deficit between the government and the governed, but also ensure that much-needed reforms attract little to no opposition from all stakeholders.”