If Nigeria’s government prioritises investment in infrastructure that caters to manufacturing, export, and small and medium-scale enterprises (SMEs), economists and financial experts foresee a potential 3.47% growth in Nigeria’s economy. In addition, they anticipate the government to offer tax benefits to enterprises, enhance the economic landscape, advocate for reduced interest rates, and support local businesses. According to local economists, the growth projection exceeds last year’s economy by 0.4 percentage points while remaining slightly higher than the World Bank’s predicted 3.3 percent.
At the recent Nigeria Economic Outlook 2024 event, hosted by First Bank with the theme “Current Realities and Prospects”, local experts expressed concerns over the country’s economic growth projections. Despite the World Bank and other institutions predicting growth rates over three percent, these experts believe that achieving these forecasts will require deliberate efforts from the government to promote both export and domestic manufacturing. Additionally, implementing measures to boost businesses will be essential for the country’s economic success.
Nigeria stand out as a key market for manufacturers.
Dr. Biodun Adedipe, the keynote speaker and Chief Consultant at B. Adedipe Associates Limited, emphasised that for the manufacturing sector to witness a significant transformation, the government must acknowledge the fundamental importance of investing in supportive infrastructure to facilitate the growth of SME manufacturers within the country. According to Adedipe, infrastructure can be effectively established by constructing specialised zones or groupings where the government can allocate areas with access to essential amenities such as power, water, and roads.
This strategy would relieve manufacturers from the burden of investing in infrastructure for production purposes. According to Adedipe, foreign manufacturing companies are departing in large numbers due to their implementation of the global strategy established in 2013. Despite this trend, Nigeria remains a prominent market that many manufacturers favour for selling their goods. He revealed that numerous businesses from Dubai, Germany, Switzerland, and other countries have shown interest in setting up operations within Nigeria over the past three months. Their attraction to the Nigerian market is evident.
Prominent industry leaders advocate proactive optimism in business.
Adedipe urged the authorities to create a more favourable atmosphere and conduct exhaustive studies on the demands of major manufacturing players, as well as scrutinise the factors that would attract them to Nigeria instead of China or other locations. He stressed the significance of aligning growth expectations with the overall economy while also cautioning against the peril of lagging behind. In a similar vein, Dr. Adesola Adeduntan, the CEO of FirstBank Group, expressed his positive outlook on the economic situation.
He urged businesses to be proactive and responsive in their approach to the changing landscape of government policies and priorities. He specifically mentioned the newly signed appropriation and emphasised its potential to stimulate the economy, thus benefiting significant players in the market. Adeduntan called upon businesses to embrace a proactive and optimistic mindset instead of making excuses to avoid taking action. He emphasised the importance of striving for success rather than fixating on the fear of failure.
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In her address at the event, Jumoke Oduwole, the Special Adviser on Presidential Enabling Business Environment Council (PEBEC) and Investment, emphasised the need to empower the private sector in order to leverage the immense economic potential of the African continent. Speaking further, she acknowledged that although Nigeria boasts abundant quality products and resources in the non-oil export sector, it is crucial to address the existing shortcomings within the business environment to fully capitalize on these opportunities.
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