The Nigerian government is committed to working with the Private Sector to promote Economic Growth and industrialisation, Vice President Kashim Shettima reiterated. Prior to the 30th Nigerian Economic Summit, he made a point of outlining how the government’s pro-business initiatives are designed to foster an atmosphere that is conducive to business. In addition to emphasising how crucial power is to industrialisation, the vice president emphasised how business-friendly President Bola Tinubu’s administration is. He promised that efforts spearheaded by the private sector to create employment and opportunities for Nigerian youth would receive government backing.
Tope Fasua, the President’s Special Advisor on Economic Matters, also urged the Nigerian Economic Summit Group (NESG) to turn their discussions into actionable results. For improved post-summit coordination, Rukaiya El-Rufai, Special Advisor on NEC and Climate Change, advocated localising international talks. NESG Vice Chairman Omoboyede Olusanya underlined that the expansion of the energy sector, indigenous pharmaceutical manufacture, and regulatory reforms will be the summit’s main priorities. A resilient Nigerian Economy is the goal of the summit, which will also cover topics including food security, digital inclusion, and healthcare access.
Nigeria faces difficulties due to its over 90% reliance on oil exports.
Established in 1993, the Nigerian Economic Summit Group (NESG) is responsible for organising the annual Nigerian Economic Summit (NES). The Nigerian government, business community, and Civil Society engage in discourse about economic policies and tactics through the Nigerian Economic Summit (NES). The summit has had a major influence on Nigeria’s economic policy trajectory over the years, especially in regards to Trade liberalisation, Infrastructure development, and Poverty alleviation. Prominent prior accomplishments encompassed advocating for Nigeria’s Economic Recovery and Growth Plan (ERGP) and implementing measures to enhance the Ease of Doing Business ranking, which saw Nigeria rise from 169th place in 2016 to 131st in 2019.
Notwithstanding these achievements, there have been difficulties with the summit. Due to political changes and bureaucratic lethargy, some of the measures that have been considered have not been implemented quickly. Numerous economic changes have been impeded in their implementation by problems like insufficient power supplies, corruption, and regulatory impediments. Nigeria faces difficulties due to its over 90% reliance on oil exports for its foreign exchange earnings, as changes in the price of oil globally can lead to economic instability. The administration has put in place a number of pro-business measures in recent years.
Manufacturing sector contributes less than 10% of the country’s GDP.
Among these include the implementation of the Companies and Allied Matters Act (CAMA) 2020, which facilitates the success of small businesses, encourages corporate transparency, and makes the process of forming a firm simpler. A further measure is the Finance Act 2020, which lowers corporate taxes for small businesses from 30% to 20% in order to modify Tax laws in favour of small and medium-sized businesses (SMEs). The Siemens Power Project, which aims to increase Nigeria’s Electricity Generation capacity from the present 5,000 megawatts to 25,000 megawatts by 2025, is one endeavour the country has committed to enhancing power supply.
Also, Nigeria’s economy has grown unevenly, mostly as a result of fluctuations in oil prices throughout the world. The economy expanded by 3.3% in 2022, mostly due to the non-oil sector, which was led by services, telecommunications, and agriculture. With food costs expected to rise by more than 20% annually in 2023, Inflation is still a serious worry. Additionally, due to unstable power supplies and inadequate infrastructure, industrialisation attempts have been sluggish. Compared to other emerging economies, Nigeria’s Manufacturing sector contributes less than 10% of the country’s GDP.
Related Article: NES#30 will Focus on Economic Development
Sector-specific projects are anticipated to be the main focus of the next NES conference. As part of Nigeria’s efforts to lessen its reliance on imports, talks pertaining to the pharmaceutical sector will centre on enhancing domestic manufacturing capabilities, especially for critical medications. Diversifying energy sources, with a focus on Renewable Energy to support the national grid, will be the main strategy in the energy sector. The conference will examine strategies to increase mechanisation and solve supply chain issues in the important field of agriculture, which employs more than 30% of the labour force. Insightful policies that will assist Nigeria in developing a more robust and diverse economy are the goal of these workshops.