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Nigeria to refine habitat to help investment

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By Akintola Timothy

Focus must be placed on fundamentals to improve Nigeria’s economy.

With Nigeria’s increasing economic crisis, experts have leveled different possible solutions that can be accrued to salvage the situation. In an interview with Dr. Andrew Nevin, the Chief Economist and Country Manager of PricewaterhouseCoopers spoke on some of the necessary paradigms for curbing Nigeria’s near-collapse economy. On the recent World Bank claim as regards the continued price hike catalyzing a global recession and its effects on Nigeria’s economy, Dr. Andrew stated that while the global recession could be as a result of various reasons such as the demographic of a declining population outside Africa, he noted that focus must be placed on the fundamentals that can improve Nigeria’s economy.

On the biggest drive of inflation in the country, he regarded inflation as a tremendous concern all over the world, particularly in Nigeria, where food inflation was rampant. He asserted that approximately 50 percent of the country’s population was spending 50 percent of their incomes on food and as such, he indicated that this inflation had a negative effect on the bottom of the social pyramid. He added that the main problem causing this food inflation was revolved around the security situation that ravaging the country. He then stated that Nigeria’s focus should be on curbing insecurity and protecting Agricultural production from this menace.

Harsh economic ambience, reason for lack of investment in Nigeria.

Dr. Andrew also commented on the increased lending rate by the Monetary Policy Committee. He indicated that the increase in the benchmark rate by 150 points was an inevitable phenomenon and while Nigeria’s economy operated on little borrowing, he agreed that this increase would have immense effect on potential borrowers. He also pointed out that the 20 percent GDP to bank asset for borrowing had also obviously had an effect on government deficit. He added that while the Central Bank of Nigeria was in the right path with its process of increasing the interest rates, the policy would not have an effect on the economy or other issues.

The feasibility of the Federal Government’s plan to enhance the country’s economic outlook by its N298.3 trillion capital investment from the private sector, he first indicated that it was a progress that the federal government had recognized the importance of private capital. He however stated that with a harsh economic ambience, no one would be willing to invest in the country. On whether there was an existing alternative, Dr. Andrew noted that there was no tithed alternative than improving the environment to accommodate business investments. He noted that Nigeria had the biggest opportunity of any country in the world to attract major investment due to its population growth and as such, the government must enhance the business ambience.

Nigeria must increase remote workers to expand digital economy.

He pointed that the economy had the potential to expand 10,20 or even 50 times over the next 30-40 years, yet there has been no significant investment. He noted that while the federal government was aware of the importance of the private sector, they must also ask themselves why these private sector sector investors, including Nigerians in Diaspora have failed to invest in the country, despite the robust opportunity. On tapping into the wealth of the digital economy, which the Organization for Economic Cooperation and Development valued at $3 trillion, Dr. Andrew Nevin indicated that Nigeria must see to an increase in remote workers.

On the economic inequality that has plagued the country which have caused a huge gap between the rich and poor classes, Dr. Andrew noted that this severe economic inequality was a global problem that the global institutions have not done enough correct this discrepancy. He said that residential housing for instance was employing skilled people which has obvious implications for the handling of human capital with education and even vocational trainings. He noted that the country must however expand residential real estates to significantly raise the income rate.

Investment in exporting services, only strategy to enhance economy.

However, on the alternatives for growing Nigeria’s revenue in case of the oil setback, he noted that the country needed to invest in exporting services, indicating that this was the only strategy feasible for Nigeria. He pointed out that his company was not making any projection as they were also directly affected by the economy’s situation. Andrew said that with this strategy, the economy was definitely on the path to progress. According to him, with immense support of this strategy by the government, as well as the support for digital economy, the economy would witness a 6-8 percent growth.


Related Link

World Bank: Website


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Ask Nigeria
Admin
1 year ago

Nigeria to refine habitat to help investment – Focus must be placed on fundamentals to improve Nigeria’s economy. – Express your point of view.

Abusi
Abusi
Member
1 year ago

The refinement should be done quickly so they can start providing enabling environment for the investors. It should be done earnestly and nothing should be left undone.

Tonerol10
Tonerol10
Member
1 year ago

Nigeria to refine habitat to help investment. Yes the refine investment we really help the country to go a long way if only government can do what is right. Not only promises

Iyanu12345ogg
Iyanu12345ogg
Member
1 year ago

Looking forward to Investing in exporting services will boost the economy way definitely on the path to progress. The strategy should be immensely supported by the gov’t.

Taiwoo
Taiwoo
Member
1 year ago

In light of the worsening economic situation in Nigeria, several experts have proposed various potential remedies that might be implemented in order to rescue the country from its current predicament.

Chibuzor
Chibuzor
Member
1 year ago

Regarding the recent assertion made by the World Bank concerning the ongoing increase in prices that has triggered a worldwide recession and its effects on Nigeria’s economy:

Adesanyaj72
Adesanyaj72
Member
1 year ago

Due to the demographic trend of a falling population in non-African countries, it has been pointed out that Nigeria’s attention needs to be focused on the fundamentals that can help the country’s economy.

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
1 year ago

Concerning the most important thing that led to inflation in the country, he said that inflation was a big worry all over the world, especially in Nigeria, where food prices were going up a lot.

Hassan Isa
Hassan Isa
Member
1 year ago

Nigeria, with its massive population, has the best chance of any country to attract substantial investment, thus the government should do what it can to foster a conducive environment for doing business there.

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
1 year ago

Even if the Central Bank of Nigeria was proceeding in the right direction with its plan to increase the interest rates, the policy itself would not have any impact on the economy or any other problems that were occurring.

Kazeem1
Kazeem1
Member
1 year ago

It was clear that the country needed to make investments in the export of services because this was the only approach that could work for Nigeria.

Ultra0711
Ultra0711
Member
1 year ago

Quickly completing the refining will allow them to begin creating a conducive environment for investors. There should be no half-measures taken or details overlooked.

Haykaylyon26
Member
1 year ago

Investment will really help to boost and improve the economy of the country if the government do the right and the necessary things to be done we need to focus on the improvement of the economy so things can balance

jdpumping
Member
1 year ago

Government should come up with tangible fundamentals to improve the economy so citizenry can tap into it and benefits.

Tolaniiii
Tolaniiii
Member
1 year ago

Nigeria improves habitat for investment. If the government does the right thing, refinery investment can really help the country. Promises

Christiana
Christiana
Member
1 year ago

To start enabling investors, refining should be done fast. It should be done seriously and completely.

Adeolastan
Adeolastan
Member
1 year ago

If the country want to have proper growth as in stable economy condition and digitalisation of products and services,the people in government know what to do to archive it but because of their selfish interest and corruption nobody will talk about it

SarahDiv
Member
1 year ago

The inflation rate is really hitting hard on us. Nigeria need to become and producing and exporting nation before we can actually break out of this difficulty.Our Government need to create an enable environment t for businesses and production to thrive.

DimOla
DimOla
Member
1 year ago

Part of the reason why we are worst hit by the inflation is that we are more a consuming nation than a producing nation. We need to go into massive production to reduce inflation in our economy.

theApr
theApr
Member
1 year ago

Although the Central Bank of Nigeria was on the correct track in raising interest rates, neither the economy nor other issues would be impacted by the decision.

Remi1
Remi1
Member
1 year ago

For instance, the residential housing industry employed skilled workers, which obviously has an impact on how human capital is managed through education and even vocational trainings.