Invest in mining, SME sectors to consolidate GDP growth — Expert

A financial expert, Mr Okechukwu Unegbu, has advised the Federal Government on ways to build on the Gross Domestic Product (GDP) growth rate of 3.98 per cent recorded in Q4 2021.

Unegbu urged the Federal Government to invest in the mining and the Small and Medium Enterprises (SME) sectors to achieve the purpose.

The former President, Chartered Institute of Bankers of Nigeria (CIBN), gave the advice in an interview in Lagos on Thursday.

Nigeria’s GDP,  according to the  National Bureau of Statistics (NBS), grew by 3.98% (year-on-year) in real terms in the fourth quarter of 2021.

This, the Bureau says, shows a sustained positive growth for the fifth quarter since the recession witnessed in 2020 when output contracted by -6.10% and -3.62% in Q2 and Q3 of 2020 under the COVID-19 pandemic.

According to the report, the fourth quarter growth indicates a steady economic recovery accounting for an annual growth of 3.40% in 2021.

The report indicates that Q4 2021 growth rate was higher than the 0.11% growth rate recorded in Q4 2020 by 3.87% points and lower than 4.03% recorded in Q3 2021 by 0.05% points.

Unegbu said that the federal government could sustain growth in the economy by investing more in the mining sector.

“Allocating more funds to enhance the business environment will attract investment into the sector.

“The sector has the capacity to contribute adequately to the nation’s economy, if harnessed properly,” Unegbu said.

He noted that the federal government could invest in the SME sector, due to its enormous growth prospects.

“The government can intervene seriously in the SME sector, because it is the engine of growth.

“The sector has the capacity to absorb a large number of unemployed people, particularly in the hinterland,” Unegbu said.

He said that the federal government could incentivise young people to foray into agriculture and its various value-chains.

“Encouraging the teeming youth to venture into the agriculture sector is imperative because the sector can contribute to growth digits of the economy.

“The agriculture sector is where the country has a comparative advantage, due to our arable land,” he said.