Projected 4.2% GDP growth rate is achievable with FG’s doggedness–- Analysts
By Ariemu Ogaga, Abuja
Analysts have expressed that 4.2 per cent Gross Domestic Product (GDP) projection in the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP) by Federal Government is achievable provided it exhibits doggedness in its fiscal policy.
The Former president Chartered Institute of Bankers of Nigeria (CIBN), President, Prof. Segun Ajibola and Economist & Former DG Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf, in a separate interview with Nigerian NewsDirect urged government to block leakages and attract foreign investors to the various sectors.
According to Ajibola, “The projected growth rate of 4.2per cent per annum as contained in the MTEF-FSP is achievable but subject to conditions.
“First, the incentives to all the business segments must be sustained; the easy of doing business in Nigeria must continue to improve to attract new and foreign investors to the various sectors, the level of security in the nation must improve in order not to scare away investors, etc. The conditions that must be met are many and in the form of a package.
“But meeting them is not impossible. It only requires strict discipline in fiscal management, political will to pursue the right policies at the right time, deepening dependence on local contents and local industries to galvanize the local economy, among others.
“But if we do not pursue the attached conditions with doggedness, running at 4.2per cent growth rate in a global economy that is still struggling to overcome the devastating effects of COVID-19 pandemic may end up as a tall order,” he noted.
Similarly, Muda said, “The projected GDP growth is achievable if we put the right macroeconomic, policy, regulatory and institutional conditions. Investment has a major role to play in driving economic growth.
“We need to create the environment for such investment growth to happen. We need to accelerate regulatory reforms, foreign exchange policy reforms, and macroeconomic stability to restore investors’ confidence.”
The Senate had passed the 2022-2024 MTEF/FSP retaining all the assumptions and projections submitted to it by President Muhammadu Buhari, in July.
The red chamber retained the exchange rate of N410.15 per dollar proposed by the Executive and also approved the projected Gross Domestic Product growth rate of 4.20 per cent.
The Senate retained the projected Inflation rate of 13 per cent Fiscal deficit estimate of N5.62 trillion.
Buhari’s projected new borrowings of N4.89 trillion, including foreign and domestic borrowing, were also retained and approved.
Also, the $3.5billion International Monetary Fund (IMF) loan at the rate of 0.01 per cent to 0.02 per cent proposed by the President was also approved to shore up the internal borrowing and to reduce external borrowing because of the exchange rate risks.
The Senate retained the Federal Government’s 2022 revenue projection of N8.36 trillion; and expenditure of N13.98 trillion.
Others parameters contained in the MTEF/FSP submitted by the President and retained by the red chamber are Statutory transfers (N613.4 billion; Debt Service (N3.12 trillion); Sinking Fund (N292); Pension, Gratuities & Retirees Benefits of N567 billion; and Aggregate Expenditure of N13.98 trillion.
