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.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.