The International Monetary Fund (IMF) has projected that Nigeria’s economy could expand by five per cent, surpassing the current growth rate of 3.19 per cent, if governance and business regulation bottlenecks are reduced by just 25 per cent.
This assertion was made by the IMF Resident Representative, Dr Christian Ebeke, during the 2024 International Business Conference and Expo, organised by the Lagos Chamber of Commerce & Industry (LCCI) under the theme ‘Invest Nigeria.’
Dr Ebeke highlighted that Nigeria’s economy currently grows at around three per cent annually. However, he emphasized that this growth could increase to five per cent by simply addressing structural inefficiencies in governance and business regulations. He noted that the IMF’s simulation showed a potential 6.4 per cent increase in Nigeria’s output over three years if these gaps were narrowed by a quarter. This would translate into an additional two per cent annual growth, pushing Nigeria’s GDP growth rate to five per cent.
Dr Ebeke further explained that for Nigeria to achieve meaningful economic progress, it must consistently grow at a rate of five to eight per cent annually, well above the population growth rate. He stressed that such growth is crucial for boosting disposable incomes and improving business turnovers, especially in an environment of high interest rates and inflation.
Meanwhile, the Minister of Marine and Blue Economy, Adegboyega Oyetola, outlined the Federal Government’s initiatives aimed at enhancing investment, such as the establishment of the Nigeria Export Processing Zones Authority, which manages Free Trade Zones and Export Processing Zones, offering exemptions from customs duties, VAT, and corporate taxes.
Oyetola also discussed the government’s collaboration with Lagos State to improve traffic flow on the Apapa – Tincan – Mile 2 corridor and optimise port operations. He noted that these efforts have led to a reduction in vessel turn-around time from seven to five days and truck turn-around time from 10 days to a few hours.
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Gabriel Idahosa, the President of LCCI, emphasized that the two-day conference would support the Federal Government in implementing bold reforms across various sectors such as agriculture, energy, foreign exchange markets, and technology. He urged the government to create a conducive policy and regulatory environment to attract foreign investments, particularly in manufacturing, to reduce Nigeria’s reliance on imported goods.
