IMF projection: Economists task incoming administration on speedy economic growth
Financial experts have urged the incoming administration to address headlong issues that will prevent positive and speedy economic growth in 2023.
The experts said this in separate interviews with journalists on Sunday in Lagos.
They spoke against the backdrop of economic projections by the International Monetary Fund (IMF) for Nigeria.
IMF had projected that Nigeria’s economy would decline from 3.2 per cent in 2023 to 3.0 per cent in 2024, indicating a 0.2 per cent drop.
The Director, Centre for Economic Policy Analysis and Research (CEPAR), University of Lagos, Prof. Ndubisi Nwokoma said the economic prospects for 2023 might not be positive for Nigeria.
Nwokoma said the recurring fiscal sustainability challenge and the uncertainties created by the disputed outcome of the 2023 General Elections would affect the country’s economic growth.
“GDP growth may be dampened, moreso, with the persisting infrastructural deficit in support of production across sectors.
“So, issues of challenge in 2023 like the fuel subsidy resolution, public debt overhang, low investment inflows and declining capital importation, should be addressed headlong by the incoming administration,” Nwokoma said.
Also, the Chairman of the Foundation for Economic Research and Training in Lagos, Prof. Akpan Ekpo believed that the projection was possible due to domestic and global mega trends.
“The impact of the naira design policy and its adverse implications, insecurity, rising inflation and rising unemployment among others, will slow down the growth of the economy.
“The Ukraine-Russian war, sluggish growth in the developed countries, global recession, global supply chain issues and others, will affect the Nigerian economy albeit, at least, as a client.
“I do not envy the incoming administration because of the plethora of challenges which are mainly structural.
“The incoming government must address the epileptic power supply. We are a generator driven economy,” he said.
Ekpo added that the incoming government must tackle poverty aggressively with well thought out programmes.
He also urged the incoming administration to ensure that citizens had quality education and health.
According to him, about 80 per cent of Nigerians lack the basic necessities to live an average life.
He stressed that all impediments should be addressed squarely to allow for a productive and diversified economy.
On his part, Sheriffdeen Tella, Professor of Economics at the Olabisi Onabanjo University, Ago-Ago-Iwoye, Ogun, who agreed with the projection, said things would change for the better with a smooth transition in government.
“The IMF projection is based on the current level of economic activities, poor economic management, particularly monetary and the debt trap, political uncertainty and pervading insecurities,” Tella said.
He, however, said the figure would be revised globally with improvement in economic management through deliberate policy changes.
