CFG Advisory: Nigeria Must Revamp Trade and Industrial Policies for Growth

Tilewa Adebajo, CEO of CFG Advisory, asserts that Nigeria must revamp its trade and industrial policies to spur economic growth. He highlights the inadequacy of the current 3.4% GDP growth rate for the nation’s large population. Adebajo outlines the need for proactive measures to close the output gap, boost local manufacturing, and stabilize fiscal policies for Nigeria to attain sustainable double-digit growth.

Tilewa Adebajo, the CEO of CFG Advisory, has emphasized the pressing need for Nigeria to revamp its trade and industrial policies in order to stimulate economic growth. With a population exceeding 200 million, he asserts that the current GDP growth rate of 3.4% is inadequate. Adebajo insists that addressing the existing output gap is essential for Nigeria to achieve its goal of becoming a Trillion Dollar Economy.

During a recent interview, Adebajo noted that sustainable double-digit growth is crucial for the nation, given its numerous resources, including a young workforce and rich natural assets like oil and gas. He highlighted improvements in economic stability, particularly regarding the exchange rate and fuel subsidy removal, as necessary conditions for fostering further investment and growth in Nigeria.

Adebajo also pointed to the challenges facing the manufacturing sector, which attained a modest 4% nominal GDP growth in 2024. He stressed the importance of formulating industrial policies aimed at reducing import dependency and enhancing local manufacturing capabilities. Adebajo called for targeted policies to support key industries such as agriculture and manufacturing to boost productivity.

The CEO encouraged the government to implement incentives that could attract investments into crucial sectors, citing successful examples like cement, fertilizer, and refineries. He argued that deliberate policy measures are needed to enhance economic growth and productivity and urged for a focus on fiscal stability amidst rising national debt.

Adebajo suggested exploring the sale of certain joint venture assets to alleviate debt levels and provide a foundation for increased productivity. He expressed optimism regarding the oil sector’s potential, advocating for the reinvestment of oil revenues into diverse economic activities. He forecasted that with appropriate policies, Nigeria could attain a growth rate exceeding 6-7% this year, in contrast to the current projection of 4-4.5% without significant policy reforms.

In summary, Adebajo’s insights underline the critical importance of transformative trade and industrial policies for Nigeria’s economic advancement. He advocates for strategic government actions to close the output gap, enhance local manufacturing, and stabilize fiscal conditions, all of which are vital for the country to realize its economic potential and achieve a Trillion Dollar Economy.

Original Source: www.cnbcafrica.com