Chartered Institute of Directors (CIoD) has advised the federal government that diversification of Nigerian economy from oil dependency, improving business environment and investment in human capital are critical triggers for economic progress.
Speaking yesterday at its 40th Annual General Meeting, the President & Chairman of Governing Council of the Institute, Tijjani M. Borodo, said because Nigeria was impacted negatively by both internal dynamics and external shocks like Russian – Ukraine war, revitalising the economy would require inputs of men and women who knows their onions.
CIoD President bemoaned government policies such as fuel subsidy removal, and devaluation of the Naira amidst other controversial policies which led to harsh economic realities; even as Nigeria grapples with structural issues such as inadequate infrastructure, high unemployment rates, and a large informal sector, despite being endowed with abundant natural resources and a sizable skilled workforce.
“Addressing these challenges requires sustained efforts in infrastructure development, job creation, and the promotion of small and medium-sized enterprises (SMEs) to drive inclusive growth and reduce poverty levels.
Nigeria’s economic prospects will depend on its ability to navigate through the complexities of the global economic landscape while addressing structural constraints and promoting inclusive growth.
“Nigeria faces persistent macroeconomic imbalances, including high inflation and a widening fiscal deficit, inflationary pressures, driven by supply-side constraints and currency depreciation which has eroded purchasing power and pose challenges to macroeconomic stability. Moreover, the fiscal deficit, exacerbated by rising public expenditure and dwindling revenues, puts pressure on government finances and debt sustainability.”
Borodo said while the Nigerian government implemented various fiscal and monetary measures to mitigate the impact of the pandemic, the recovery has remains fragile, with lingering uncertainties surrounding the global economic outlook and domestic policy responses.
He maintained that there is pressing need for policy reforms and strategic interventions to promote sustainable and inclusive economic growth in Nigeria. This according to him includes: investing in critical infrastructure, enhancing the business environment to attract private investment, and strengthening social safety nets to support the most vulnerable segments of society.
“Fostering regional integration and promoting intra-African trade can unlock new opportunities for economic development and reduce Nigeria’s reliance on external markets. Moreover, there are also opportunities for reform and transformation. By addressing these challenges through sound economic policies and strategic best practices, eradication or reduction of corruption and good governance interventions, Nigeria can unlock its full economic potential and achieve sustainable development for the benefit of all its citizens,” he affirmed.