The Nigeria Economic Summit Group (NESG) has suggested that Nigeria needs to achieve a paradigm shift in governance and policy design to sustain and accelerate economic growth in 2022.
Chief Executive Officer of the NESG, Mr Laoye Jaiyeola, who made the suggestion in the group’s Macroeconomic Outlook for 2022, said the year presented opportunities to initiate critical reforms to achieve the shift.
He warned that failure by the Federal Government to embark on the reforms could exacerbate challenges that the country encountered in 2021.
“In the NESG Macroeconomic Outlook for 2022, we highlight the need for reforms that will sustain the recovery of output and ensure improved social inclusion in Nigeria.
“We believe that the role of government is to ensure that reforms translate to a friendly business environment and better welfare conditions for households,’’  he said.
Jaiyeola said Nigeria was rapidly consolidating its recovery from the effect of the COVID-19 pandemic, noting, however, that the recovery had not been all-inclusive.
“Pre-COVID-19 narrative of poor inclusiveness and macroeconomic instability still persists.
“In spite of a GDP growth of 3.2 per cent in the first three quarters of 2021, data from the National Bureau of Statistics show that average prices of goods and services were high.
“Trade balance remained in deficit and foreign investment inflow was constrained.
“The World Bank estimated that an additional eight million Nigerians fell into poverty between 2020 and 2021 due to lower purchasing power,’’ he added.
The NESG boss also said although Nigeria had enormous potentials, job creation across sectors was lagging, resulting in an increase in unemployed individuals.
“While there is considerable improvement in some areas, such as the mobilisation of non-oil revenue in the last few years, one thing is clear: Nigeria cannot afford to continue with its business-as-usual approach in policymaking and execution,’’ he stressed.
He added that widespread insecurity across the country emphasised the need for policy formulation and implementation that impacted all strata of society.
“The heightened insecurity and social vices in several parts of the country is proof that when some segments of the population are left behind, it will offset the few gains made prior to COVID-19.
“It will also deprive the country of much-needed investments that would ensure sustainable growth and development, ‘’ he said.
According to Jaiyeola, the challenges associated with insecurity, rising prices, unemployment, and lower investments intensified the need for reforms that will lead the country to substantial economic progress and improved social inclusion.