IMF hinges Nigeria’s 3.1% economic growth outlook on stronger reforms
By Rukayat Moisemhe and Aderonke Ojediran
The International Monetary Fund (IMF) says achieving Nigeria’s projected 3.1 percent economic growth outlook for 2024 is dependent on implementing stronger reforms.
IMF Resident Representative Dr Christian Ebeke said this yesterday in Lagos at the Lagos Chamber of Commerce and Industry (LCCI) International Business Conference and Expo 2024, which had the theme “Invest Nigeria. “
Ebeke said that further reforms on governance and business regulations were needed for the country to grow slightly from the 2.9 per cent rate of 2023.
He said such reforms would transform its growth momentum into something more durable.
However, he said that the country had recorded progress in its credit market, as well as in the financial and external sectors.
“Insecurity, tight financial conditions, multiple taxes, insufficient power, and corruption are foremost constraints businesses identify.
“What comforts the IMF is that the Nigerian government can address these issues, 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 per cent.
According to him, if that is done, the Gross Domestic Product (GDP) output can be lifted by 6.4 per cent in the next three years.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, said Nigeria’s strategic location and abundant resources presented vast investment opportunities, particularly in the marine and blue economy sectors.
Oyetola said that, in spite of existing challenges, the government was committed to creating an enabling environment to foster economic growth and attract significant investments.
He highlighted some of the government’s incentives designed to drive investment in the marine and blue economy sector, including tax exemptions for businesses operating in free trade zones and infrastructural support.
He added that the government had provided new export opportunities for the marine sector under the Guided Trade Initiative (GTI) of the African Continental Free Trade Area (AfCFTA) and the Cabotage Vessel Financing Fund (CVFF), among other programmes.
“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 various 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.
Lagos State Governor Babajide Sanwo-Olu said that the state, being Africa’s economic hub, offered a conducive business environment, a strategic location, a vast market, and a 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 infrastructure development was a key area of focus for the state.
He said 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 can keep up with our rapidly growing population.
LCCI President Gabriel Idahosa said that the conference was pivotal to Nigeria’s journey towards stabilising the economy and driving sustainable economic growth and development.
Idahosa said 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.
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.
