Business
Nigeria Has Potentials For Better GDP – Experts
Some Financial experts on Thursday said that Nigeria had the potentials to achieve higher economic growth rate than the 7.68 per cent achieved in 2011.
The experts told newsmen in separate interviews in Lagos on Thursday that this was possible if government adopted measures that would impact positively on all sectors of the economy.
It would be recalled that Dr. Yemi Kale, Statistician–General, National Bureau of Statistics (NBS), disclosed last Tuesday that Nigeria achieved 7.68 per cent growth in real Gross Domestic Product (GDP) in 2011.
Mr Titus Okunronmu, a former Director of the Central Bank of Nigeria (CBN), said that any growth rate that was less than 12 per cent would not impact postively on the standard of living of the people.
He said that the wealth of the nation was being controlled by less than four per cent of the population, adding that there was gross inequality in the national income distribution.
“The economy is not developing at an optimal level due to persistent increase in unemployment and poverty rates,” he said.
Okunronmu advised government to bridge the wide gap between the rich and the poor to achieve some fairness in the distribution of the national income.
“If the Federal Government can resolve the problems of refineries and invest in petrochemical industry, this will create more job opportunities for the people,” he said.
Mr Olumide Adegoke, the General Manager, Standard Alliance Insurance, said that the nation’s economy “growth model is narrow and difficult to examine the various sectors of the economy”.
“There must be deliberate efforts by the government to put the economy on the right path so that the GDP can impact better on the standard of living of the citizens.
Adegoke advised the government to stimulate the real sector to ensure sustainable growth of the Gross Domestic Product (GDP).
“The ability of the government to reactivate the real sector and diversify the economy will impact positively on the Nigerian economic growth rate,” he said.
General Manager, Regency Assets Management Ltd., Mr Adewale Adeniyi,said that the economy would not grow when unemployment rate was on the increase.
He said that that many companies had folded up because of inconsistency in government policies, resulting in downsizing of workers. Adeniyi said that Nigeria had a lot of potential, but the poor state of the infrastructure would not allow the economy to grow at the optimal level.
“Provision of infrastructure and stable power are major catalysts than can develop the economy,” he said.
The General Manager, Cash Craft Assets Management Ltd, Mr Ayodeji Fagbenle, commended the growth rate, but said that the nation could be better.
“Once there is growth in the agricultural sector, there will also be growth in the GDP. “Government needs to galvanise the agricultural sector so that the GDP can improve and impact positively on the standard of living of citizens”, he said.
A senior lecturer in the Department of Economics University of Lagos, Dr. Tunde Adeoye, advised the government to address the issue of corruption in the country. He also advised that all monies recovered from fraudulent Nigerians should be used to improve the economy.
Adeoye said that better economic growth could be achieved through reforms.
The rate of inflation in Nigeria has declined for the sixth consecutive month to 16.63 per cent in September, which is its lowest level since January this year, the National Bureau of Statistics (NBS) has said.
The Bureau, in its Consumer Price Index released on Friday, said the inflation rate fell by 0.38 per cent from 17.01 per cent in August.
The drop in headline inflation began in April when it fell to18.12 per cent from 18.17 per cent in March.
According to NBC, the urban inflation rate increased by 17.19 per cent (year-on-year) in September 2021 from 17.59 per cent recorded in August 2021, while the rural inflation rate increased by 16.08 per cent in September 2021 from 16.45 per cent in August 2021.
It said farm produce such as bread, cereals, cocoa, meat, coffee, tea and cocoa drove food inflation, fell to 19.57 per cent in September from 20.30 percent in August.
Other items that led to the rise in the composite food index in September included oils and fats, yam and other tubers, fish, potatoes, milk, cheese and egg.
“On month-on-month basis, the food sub-index increased by 1.26 per cent in September 2021, up by 0.20 per cent points from 1.06 per cent recorded in August 2021”, the NBS stated.
The Statistician-General of the Federation, Simon Harry, said the fall in the inflation rate signalled an improvement in government performance and more favourable economic conditions.
“The inflation rate in Nigeria has maintained a consecutive decline in year-on-year for a period of six consecutive months, starting from March 2021 to August 2021”, he said.
By: Corlins Walter
The Nigerian Communications Commission (NCC) has said that the plan for deployment of Fifth Generation technology in the country has gotten to 97 per cent.
Executive Vice Chairman of NCC, Prof. Umar Danbatta, disclosed this at the annual African Tech Alliance Forum with the theme ‘Embracing changes and digital transformation in the new normal’.
According to a statement titled ‘NCC update on plans for 5G deployment’ issued by the NCC’s Deputy Manager, Public Affairs, Kunle Azeez, the commission stated that some spectrum would be auctioned.
“Already, we are set for the auction of some spectrum slots in the 3.5GHz band. The other day, I was at the National Assembly, I informed the Senate that we were 95 per cent ready for 5G.
“Today as we speak, I am delighted to tell you that we are already at 97 per cent completion.
“The committee set up to auction the spectrum has already developed an information memorandum which is already published for inputs and comments from all industry stakeholders.
“Prior to this, a 5G deployment plan was developed and we have since secured the Federal Government’s approval”, the commission stated.
The commission also explained that because of the Covid-19 pandemic, almost every means of communication became virtual, which led to an increase in network connectivity requirements as a result of unprecedented upsurge in internet traffic.
Danbatta added that even though the network infrastructure in the nation demonstrated some capacity to contain the surge in internet traffic, a lot of work was being done by the commission to boost network capacity, sensitise the public and ensure accessibility to affordable connectivity.
“Emerging technologies such as 5G, which NCC is driving aggressively in Nigeria, Internet of Things; Cloud Computing; Quantum Computing Augmented/Virtual Reality, and similar emerging technologies are playing a critical role in improving remote communication over the internet with great user experience.
“The NCC is committed to promoting this inevitable change and enhancing user experience through effective regulation of the telecoms sector”, he stated.
The International Monetary Fund (IMF) has projected that Nigeria’s Gross Debt-to-Gross Domestic Product ratio will rise from 35.7 per cent in 2021 to 42 per cent by 2026.
The IMF stated this in its October 2021 Fiscal Monitor Report published on its website.
It said the country’s gross debt-to-GDP ratio would increase from 35.7 per cent in 2021 to 36.9 per cent in 2022, 37.7 per cent in 2023, 39.1 per cent in 2024 and 40.6 per cent in 2025.
According to the report, the gross debt includes overdrafts from the Central Bank of Nigeria (CBN) and liabilities of the Asset Management Corporation of Nigeria (AMCON).
It added that the general government’s revenue-to-GDP ratio would decrease from 7.2 per cent in 2021 to 6.5 per cent in 2026, while the general government expenditure-to-GDP ratio would decrease from 13.3 per cent in 2021 to 12.6 per cent in 2026.
The global financial institution said that the general government net debt-to-GDP ratio would increase from 35.3 per cent in 2021 to 41.8 per cent in 2026.
“The overdrafts and government deposits at the Central Bank of Nigeria almost cancel each other out, and the Asset Management Corporation of Nigeria debt is roughly halved,” it added.
The report said for low-income developing countries like Nigeria, average gross debt in 2021 would likely remain stable at almost 50 per cent in 2020, while debt vulnerabilities “are expected to be high.
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