CEM REPORT, ECONOMY | Experts have proposed a 10-year roadmap that will put Nigeria back on the path of sustainable growth. The roadmap which includes recommendations to curb inflation also proposes means to militate against extreme poverty.
Director, NTU and SBF, Amit Jain
Expert believes that except the federal government resolves the high inflation rate and provide critical infrastructure for economic growth and development over 35 million Nigerians are likely to fall into the poverty bracket rather than climb out of it.
The 10-year roadmap was put together by Nanyang Technological University (NTU) and the Singapore Business Federation (SBF) Center for African Studies, Nanyang Business School in partnership with Tolaram.
At the public presentation in Lagos, the Director, NTU and SBF, Amit Jain, stated that Nigeria might not be able to address the problem of extreme poverty for 35 million people by 2025, except factors like high inflation, trade barriers and critical infrastructure for economic growth and development are addressed.
He noted that the roadmap aims to put Nigeria back on the path of sustainable growth and adhering to its recommendations would put the country’s economy among the top 20 economies of the world by 2030
Jain continued that the recommendations were achievable noting that if changes must be made interlinked factors limiting economic growth and development must be addressed, stressing that economic challenges in Nigeria cut across all citizens.
“Irrespective of business terrain, you cannot afford to overlook Nigeria as what happens here affects everyone. Given the country’s strength of population, fertile soil, enough water, sunshine, large coastline, vibrant democracy and a vibrant youthful population, some weaknesses such as debt, limited fiscal space, poverty, infrastructure challenges exist,” he said.
“However, while there are the threats of insecurity, corruption, unemployment, inequality and climate change, massive opportunities exist in agriculture, technology, services and Nigeria’s massive consumer demand.”
Highlighting proactive steps to put the country on the path of growth and reduce its inflation rate, he said Nigeria must revamp crude oil production very quickly to create the much needed fiscal room.
He noted that Nigeria should focus on economic stabilisation, and structural reforms to revive growth; prioritise investment in health, education and social protection and avert negative Gross Domestic Product (GDP) growth to arrest poverty within the next two years.
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He added that within the next five years, Nigeria should prioritise reviving growth, enhancing investment climate, improving business confidence, targeting a four per cent GDP growth rate and reviving employment.
“Within the next ten years, what the country can do is sustain growth with a focus on governance, deliver public goods and aim for a seven per cent GDP growth rate while expanding employment opportunities,” he added.
“What government can do to revert the current economic trend line and improve business climate is to really curb inflation, reduce trade barriers, curb oil theft and insecurity and vamp up agro-processing,” he added.
Jain warned that over 35 million Nigerians are likely to fall into the poverty bracket except the federal government urgently resolve the high inflation rate, remove trade barriers and provide critical infrastructure for economic growth and development.
“We have looked at some of the causes of this extreme poverty endemic in Nigeria which include inflation, population growth and climate change essentially explains why it remains so endemic. One of the best ways to address extreme poverty is to curb inflation, reduce trade barriers for many people to get job opportunities, educate the populace and improve their health to become a lot more productive.”
“The most effective way to fight poverty in the short term is to tackle inflation and the most effective way to tackle inflation is to drop the value of the naira and this can only be done if monetary policy is tightened.”
He stated that the federal government needs to take proactive steps to put the country on the path of growth and reduce its inflation rate.
Inflation in Nigeria has defiled policies, continuing in its steady rise, the government has continued to sing plans but yet the economy continues its steady nose dive.
