According to the International Monetary Fund (IMF), Nigeria’s economy could experience a significant boost if the government were to address certain structural challenges. The organisation suggests that reducing governance bottlenecks and business regulations by just 25% could propel the country’s GDP growth from the current 3.19% to a robust 5%.
IMF Resident Representative, Dr. Christian Ebeke, emphasised the potential for Nigeria to achieve higher economic growth rates. He noted that the country’s current growth trajectory is constrained by “structural gaps” in governance and business regulation. By addressing these issues, Nigeria could unlock a “multi-durable growth acceleration.”
The IMF’s analysis revealed that reducing these structural gaps by 25% could increase Nigeria’s output by a significant 6.4% over the next three years. This translates to an additional 10 percentage points of annual growth, which would position Nigeria for a more prosperous future.
Dr. Ebeke highlighted the importance of Nigeria’s economic growth exceeding its population growth rate. This is crucial for businesses to thrive, especially in challenging economic conditions characterised by high interest rates and inflation.
To further stimulate investment and economic growth, the Nigerian government has implemented various initiatives. These include the establishment of the Nigeria Export Processing Zones Authority, which offers incentives to businesses operating in free trade zones, and efforts to improve the efficiency of port operations.
The Lagos Chamber of Commerce & Industry (LCCI) organised the 2024 International Business Conference and Expo to discuss these issues and explore strategies for driving economic growth. The event aimed to encourage the government to implement bold reforms in sectors such as agriculture, energy, foreign exchange, and technology.
Gabriel Idahosa, President of the LCCI, called on the government to create a favourable policy and regulatory environment to attract foreign investment and promote local manufacturing. By diversifying the economy and reducing reliance on oil, Nigeria can achieve sustainable and inclusive growth.