Yusuf: Nigeria at risk of economic stagnation, distress
Barbara Bako, Abuja
The Chairman of the Nigerian Economic Summit Group, NESG, Mr. Niyi Yusuf, said the federal government needs to urgently tame the low-growth and low-investment era to avert looming economic stagnation and distress.
He stated this during his speech at the 29th Nigerian Economic Summit themed: “Pathways to Sustainable Economic Transformation and Inclusion”.
Mr. Yusuf said, “With more than 133 million multidimensionally poor Nigerians, there are potentially more risks of stagnation and distress if a low-growth and low-investment era persists. The future of the Nigerian Child is at stake, across every geopolitical zone.”
He added that the nation’s ageing population was at risk, as the retiree’s savings and investments could be eroded in a few years.
“The Nigerian ageing population is also at risk. There is a high prospect that a retiree’s savings and investments will be eroded entirely just a few years into the first or second decade of retirement.
“Our high fertility rate which is driving a much higher population growth than economic growth poses a risk of an unproductive population bulge, with an unmanageable social infrastructure cost and burden for supporting our children’s health, nutrition and education.”
He requested a National Emergency Energisation and a National Security Policy to achieve the Made-in-Nigeria dream.
Yusuf said, “Our nation stands at a critical precipice, and our challenges demand immediate, concerted efforts. We need to act now with a shared sense of urgency.
“Your Excellency, a Multi-Trillion Dollar Economy growth trajectory will urgently need certain actions including a macroeconomic stabilisation programme supported by an aggressively scaled national security effort to halt all forms of syndicated and organised crime around crude oil and solid minerals
“A Made-in-Nigeria Agenda. To Make-in-Nigeria, two strategic drivers requires a national emergency energisation programme to enable access to stable, predictable, and affordable electricity supply.”
The Chairman noted that the country has entered a new political and economic leadership era with the world undergoing an unprecedented economic and geopolitical transformation.
He noted, “This has strategic national implications, challenges, and opportunities that Nigeria must consider as we advance into the future.
“The transmission effects of which has aggravated economic challenges in Africa and Nigeria in particular. In Nigeria, we have seen a return of older risks – inflation, cost-of-living crises, capital outflows, widespread social discontent, risk of geopolitically motivated regional confrontation, and marked risk of de-democratisation of West Africa.”
Mr. Yusuf told the president that his eight-priority areas of his administration could only be achieved through a strong partner between the government and private sector players.
He said, “Your Excellency, your Administration’s unveiling of the Eight Priorities of Government which focus on economic growth and job creation, ending poverty, access to capital, inclusivity, food security, national security, fairness and the rule of law and anti-corruption stance, provide a strategic perspective of your Government’s grasp of both the issues and solutions to the national crises and also for the transformation of the Nigerian economy into one that is competitive, sustainable, inclusive and open. This is possible only if public and private sector leaders work together towards the same national vision.”
The NESG boss harped on the need for immediate action on the wase of doing business in the country.
According to him, “The need for urgent strategic shifts that impact the ease and cost of doing business within a relatively short period is a matter of existential threat to the survival of enterprises and entrepreneurs.
“The low access to and increasing cost of FX, high cost of inventory, imported inputs, and operations, coupled with the diversity of taxes, continue to erode business balance sheets, with resultant contraction in production and employment.
“Large firms are battling low-capacity utilisation, while medium, small and micro-enterprises grapple with multidimensional complexities. These poor economic outcomes have created worsening social conditions that cannot be taken for granted.”
Mr. Yusuf called for a national infrastructure corridor development programme – an efficient and integrated transport and logistics network that links value chains to sea, air and land ports.
He also urged a “revised national assets optimisation plan that ensures critical national assets are fully utilized and productive – if we must sell, concession or commercialise some assets to achieve the desired level of productivity, we should.”
He said that the NESG was ready to support the government to model the tough choices required and the associated palliative measures to ameliorate the short-term impact on the populace.
