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Experts call for infrastructural development

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By Okunloye Abiodun

Government should offer tax benefits to enterprises, enhance economic landscape.

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.

Related Article: Challenges Confronting Business in 2024

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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AN-Toni
Editor
1 month ago

Experts call for infrastructural development.Government should offer tax benefits to enterprises, enhance economic landscape.Express your point of view.

SarahDiv
Member
1 month ago

Investing in strategic infrastructure, supporting SMEs, and offering tax benefits can boost Nigeria’s economy by 3.47%, according to experts. They emphasize the importance of attracting foreign manufacturers and creating a favorable business environment. Proactive optimism and leveraging government policies are seen as crucial for economic growth. The focus is on empowering the private sector to unlock Africa’s economic potential. 🇳🇬📈 #NigeriaEconomy #InfrastructureDevelopment

Kazeem1
Member
1 month ago

Economic expansion is contingent upon the development of infrastructure. By providing businesses with tax breaks, you can stimulate investment and build a stronger economy. Seeing professionals support these crucial projects is wonderful.

Taiwo
Member
1 month ago

The experts urge the expansion of infrastructure. Businesses should get tax breaks from the government to improve the economy.A projected 3.47% expansion in Nigeria’s economy is anticipated by economists and financial professionals who invest in infrastructure that supports manufacturing, export, and small and medium-sized enterprises (SMEs).

Adeoye Adegoke
Member
1 month ago

I completely agree with the experts’ call for infrastructural development. Investing in infrastructure is crucial for economic growth and development. By improving roads, bridges, airports, and other essential facilities, the government can create a solid foundation for businesses to thrive and enhance the overall economic landscape.
Offering tax benefits to enterprises is an excellent strategy to encourage investment and stimulate economic activity. Lowering tax burdens can attract businesses, both local and foreign, to establish and expand their operations, leading to job creation and increased revenue generation.
Moreover, enhancing the economic landscape through infrastructural development can have a ripple effect on various sectors, such as transportation, manufacturing, and tourism. It can improve connectivity, reduce logistical costs, and attract more investments, ultimately boosting economic growth and improving the quality of life for citizens.
I believe that proactive policies aimed at fostering infrastructural development and providing incentives to businesses can have a positive and long-lasting impact on the economy. It’s essential for the government to prioritize these initiatives and work towards creating an environment that encourages growth, innovation, and economic prosperity.