Launching the 2022 Macro Economic Outlook, the Nigerian Economic Summit Group (NESG) urged the federal government to expedite measures that will spur economic expansion.
In his keynote speech at the launch on Tuesday in Abuja, NESG Chairman Asue Ighodalo noted that the organization has over the years produced studies and recommendations that are specific to Nigeria’s interests.
“Fiscal boosters, unique to economic growth, should be used to overcome the difficulties the economy has with foreign exchange, insecurity, and other issues.
The obstacles need to be removed as soon as possible in order to further progress. According to World Bank estimates, a million more people entered poverty between June and December, bringing the overall number of impoverished people to 91 million.
“Therefore, crucial changes need to be put into place, and we at NESG think that policies aimed at security and employment should lead government policy and action in 2022,” he stated.
In addition, the NESG Chairman pointed out that since 2022 is a year of pre-elections, there would be more financial spending that year, and efficient governance will be replaced by aggressive politics.
“There must be a great urgency of now for Nigeria to prosper in order to move past its past and build a strong foundation for a catalytic solid base to secure the future of Nigeria.”
“The economic reforms that will kick-start Economic Growth can still be initiated with a navigable resolve and assiduously worked toward,” he said.
The Finance Act of 2020, the adoption of the exchange rate for investors and exporters, the Twitter ban, Omicron, and the Petroleum Industry Act, according to Dr. Olusegun Onisakin, Head of Research at NESG, impacted the economic trajectory in 2021.
He stated, “The fact that inflation is coming down doesn’t mean that prices are not increasing,” highlighting the events of 2021. Three out of every four Nigerians do not have a job. Also, FG’s ability to generate revenue was limited by its domestic borrowing.
“CBN has been working on growth modalities, but we are struggling with FDI that has completely eroded and we are importing more than we are exporting,”
“Different policy events will influence the economy,” he stated. These events include the start of the Dangote refinery, the implementation of the National Development Plan, the withdrawal of fuel subsidies, and election spending that might balloon the fiscal deficit.
The economy and what the government can do to improve it are in the NESG’s best interests, according to CEO Laoye Jaiyeola.
He urged the government to guarantee its execution, stressing that the plan’s implementation is what matters most. He praised the Nigerian government for launching the development plan because it was inclusive.
“If we don’t resolve the challenge of FX, we may not achieve of the last mile, the demand is higher than the supply, and government must ensure how we boost supply and ensure appropriate pricing,” he said in a separate statement. He called on the government to address the issues surrounding foreign exchange.
“Our ports continue to be the least appealing on the continent, and unless this is addressed, the AfCFTA will not be realized in its entirety due to the excessively high logistics costs,” he continued.
