AERMP Forecasts Economic Growth in Nigeria by 2025 Amid Global Challenges

The AERMP projects Nigeria’s economy to thrive by 2025, despite inflation concerns linked to US tariff hikes. Director General Olayinka Odutola highlights successful government reforms, falling food prices, and rising power generation as key factors. He stresses reducing import reliance and enhancing local production to strengthen the economy. Additionally, he advocates for more support for small businesses and further financial initiatives from banks and fintechs to foster growth.

The Association of Enterprise Risk Management Professionals (AERMP) has forecasted that Nigeria could witness significant economic growth by 2025, attributing this optimism to ongoing reforms initiated by President Bola Tinubu’s administration. Despite concerns regarding inflation triggered by global tariff wars, particularly by the United States, Olayinka Odutola, the Director General of AERMP, emphasized evidence of growth, such as decreased food prices and enhanced power generation.

Mr. Odutola noted that the government’s efforts have successfully mitigated food inflation during a period typically known for rising prices. He highlighted a significant drop in food prices, suggesting effective measures against hoarding during the Ramadan period. He expressed optimism about the ongoing reforms addressing insecurity in the agricultural sector and encouraged further enhancements to engage youth in farming initiatives.

A noteworthy achievement mentioned by Mr. Odutola is the increase in power generation by the Transmission Company of Nigeria to 5,713.60 megawatts, which he believes will positively impact industries and bolster economic performance. He stressed the necessity for continuous support for reforms aimed at unlocking Nigeria’s vast economic potential, thereby making it more competitive globally.

To withstand the impact of US tariff increases, Mr. Odutola urged Nigeria to lessen its reliance on imports by boosting local production, resolving infrastructural challenges, improving power supply, and empowering small businesses. He asserted that diminishing import dependency is crucial for economic resilience, emphasizing the importance of strengthening local production capabilities.

He further underscored the pivotal role of small businesses, which he referred to as the backbone of the economy. He observed that advanced nations thrive by capitalizing on their Micro, Small, and Medium-sized Enterprises (MSMEs). While commending the government’s initiatives to lower interest rates for small enterprises, he argued that these efforts alone are insufficient, advocating for greater involvement from banks and fintech companies in providing accessible financing for small businesses.

Lastly, Mr. Odutola advised local governments to implement a registration process for small businesses to obtain accurate data, which would facilitate targeted growth strategies. He also lauded reforms in the foreign exchange sector aimed at eliminating fraudulent activities and emphasized the need for enhanced local production and alternative energy sources.

In conclusion, the AERMP’s prediction of Nigeria’s economic boom by 2025 reflects a positive outlook based on governmental reforms and a reduction in inflationary pressures. By focusing on increasing local production, empowering small businesses, and addressing infrastructural deficits, Nigeria can enhance its economic resilience. Collaborative efforts from both public and private sectors are essential to realize these growth potentials and foster a more stable economy in the face of global economic challenges.

Original Source: dailynigerian.com