FG must implement stronger reforms to record economic growth — IMF
..Urges FG to tackle bottlenecks in governance, regulation
…As Oyetola, Sanwo-Olu woo investors
By Seun Ibiyemi
The International Monetary Fund (IMF), has said achieving Nigeria’s projected 3.1 percent economic growth outlook for 2024 is dependent on implementation of stronger reforms.
IMF Resident Representative, Dr Christian Ebeke said this at the Lagos Chamber of Commerce and Industry (LCCI) International Business Conference and Expo 2024 with the theme: “Invest Nigeria,” on Tuesday in Lagos.
Ebeke said that for the country to grow slightly from 2.9 percent rate of 2023, further reforms on governance and business regulations were needed.
He said that such reforms would transform its growth momentum into something more durable.
He, however, said that the country had recorded progress in its credit market, as well as financial and external sectors.
“Insecurity, tight financial conditions, multiple taxes, insufficient power and corruption are foremost constraints identified by businesses.
“What comforts the IMF is that these issues can be addressed by the Nigerian government, and they are currently being addressed through reforms by the Federal Government.
“And we are encouraged by the fact that these issues can be reversed,” he said.
He said that Nigeria should close the structural gaps like India, by reducing governance and business regulation bottlenecks by 25 percent.
According to him, if that is done, the Gross Domestic Product (GDP) output can be lifted by 6.4 percent in the next three years.
Also, the Minister of Marine and Blue Economy, Adegboyega Oyetola, said that Nigeria’s strategic location and abundant resources presented vast investment opportunities, particularly in the marine and blue economy sector.
Oyetola said that in spite of existing challenges, the government was committed to creating an enabling environment to foster economic growth to attract significant investments.
He highlighted some of the government’s incentives designed to drive investment in the marine and blue economy sector to include tax exemptions for businesses operating in free trade zones, and infrastructural support.
He added that the government had provided new export opportunities for the marine sector under the Guided Trade Initiative (GTI) of the African Continental Free Trade Area (AfCFTA), the Cabotage Vessel Financing Fund (CVFF) among others.
“Our commitment to the marine and blue economy is demonstrated through ongoing port rehabilitation and modernisation projects.
“To boost investment, the Nigerian government has introduced a wide range of incentives, including tax reliefs, trade zone benefits, infrastructure development, and financial support.
“I encourage the business community and investors to take advantage of such incentives to contribute to Nigeria’s economic development and be part of Africa’s promising future,” he said.
Meanwhile, Lagos State Governor, Mr. Babajide Sanwo-Olu, on Tuesday reiterated his administration’s commitment to continuously create an enabling environment for both local and foreign businesses to thrive in the State.
He said the Lagos State Government will continue to implement policies and initiatives that will attract and retain investments.
The Governor, while speaking on his administration’s commitment to “Making Lagos 21st Century Economy,” disclosed that “Lagos is focusing more on infrastructural development in public transportation, logistics, digital ecosystem, agriculture, and others to boost foreign investors’ confidence in the state, which will create employment opportunities for the teeming youths.”
He said: “Lagos, Africa’s economic hub, offers a conducive business environment, a strategic location, a vast market, and a pool of energetic talent. Our administration has implemented and continues to implement policies and initiatives to attract investments, create opportunities, and drive growth.
“One key area of focus for us is infrastructure development: upgrading and expanding our transportation and logistics networks, telecommunications, healthcare, education, and digital ecosystem infrastructure. We are well aware that the kind of growth that we seek to unleash will not happen without a solid foundation of infrastructure that is able to keep ahead of our rapidly growing population.
“As one of Africa’s startup capitals, we are especially keen to invest in digital infrastructure to power the innovative ideas of our people. Agriculture and food security are also priorities, in line with a national focus on these areas.
“Lagos may be the State with the smallest landmass in Nigeria, but I can boldly say that our land disadvantage is more than offset by the boldness with which we are embracing the boundless opportunities in processing, value-addition and logistics.
“This is why we are building Africa’s largest food logistics hub, here in Lagos. When completed, it will be able to hold enough food to supply Lagos for 90 days in the event of shortages and serve millions of farmers, traders, and other players in the agricultural value chain.
“We are developing our tourism and entertainment sector with various investments in hospitality, leisure, and cultural infrastructure to showcase the best of Lagos and Nigeria. From the John Randle Centre for Yoruba Culture and History to the revamped National Theatre to a 10,000-seater purpose-built entertainment arena that saw a groundbreaking earlier this year. Lagos is asserting itself as Africa’s true cultural capital, building on the global acclaim that comes with being the hub and source of Afrobeats and Nollywood.”
Governor Sanwo-Olu stressed further that “We will continue to roll out incentives for investors, from tax breaks and waivers to streamlined regulatory processes and a judicial system that is competent, efficient, and guarantees the sanctity of contracts and property rights.”
“This is not mere talk. Yes, first we talk the talk, and then, in the truly can-do spirit of Lagos, we walk that talk. The results are around us. Lagos today is home to the largest single-train crude oil refinery in the world, as well as Africa’s largest Granulated Urea Fertiliser complex. Earlier this year we welcomed the longest submarine cable in the world, when it made a landing in Lagos, the latest of several transcontinental cables to land in Lagos, backed by companies like Meta, MTN and Orange.
“Lagos is now home to two new Rail Mass Transit lines, and counting. Healthcare investment is flooding in, delivering world-class public and private medical facilities. One of these is the largest children’s hospital in Africa, which the Lagos State Government is building.
“As a government, we will continue to create and ensure a business-friendly environment in Lagos State, and continue to keep our doors open to all interested investors and partners. I therefore invite you to take advantage of these opportunities and partner with us to build a prosperous future for Nigeria and all her people.”
Governor Sanwo-Olu also commended the President and Chairman of Council of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Gabriel Idahosa, and his team for their dedication and commitment to the development of our dear State.
He said, “LCCI fully deserves its prominence on our business and investment landscape for the sense of belonging, guidance, and support that it provides to all its members.”
The President, LCCI, Mr Gabriel Idahosa said that the conference was pivotal to Nigeria’s journey towards stabilising the economy and driving sustainable economic growth and development.
Idahosa said that the event was a unique opportunity to explore new avenues for investment, foster innovative partnerships, and chart a course toward a more prosperous future for Nigeria and the African continent.
He said that Nigeria, blessed with vast resources and an entrepreneurial spirit, was home to the largest economy in Africa, a burgeoning middle class, and a youthful population eager to contribute to the global economy.
“To fully harness the nation’s potentials, there must be an enabling environment to support business growth, encourage innovation, and ensure that local and international investors remain confident of their investments.”
“We have noticed the government’s commitment to making Nigeria a preferred destination for global investors.
“We are actively engaging with the government in implementing policies that promote ease of doing business, improve infrastructure, and enhance security,” he said.
“We also see the government embarking on bold reforms in various sectors, including agriculture, energy, foreign exchange markets, and technology, to further diversify our economy and reduce our reliance on oil.
“We urge the government to create a policy and regulatory environment to attract foreign investments into building factories in Nigeria to manufacture the many products we import today,” he said.
Meanwhile, Ambassadors to countries such as Belgium, Germany, Israel, Bulgaria, India, Ireland, Kenya and Bangladesh, affirmed their commitments to deepening partnerships with Nigeria across several sectors of its economy in mutually beneficial ways.
