Tilewa Adebajo, CEO of CFG Advisory, stresses the need for Nigeria to revamp its trade and industrial policies to close the output gap and boost its economic growth. He advocates for sustainable growth rates, emphasizing the importance of local manufacturing and reducing reliance on imports. With strategic policy changes, Adebajo believes Nigeria can achieve substantial economic progress towards becoming a Trillion Dollar Economy.
In a recent interview, Tilewa Adebajo, CEO of CFG Advisory, articulated that Nigeria must revamp its trade and industrial policies to enhance economic growth and address the existing output gap. Despite achieving a 3.4% GDP growth, Adebajo contends this is insufficient for a nation with a population of 200 million. He believes closing the output gap is vital for Nigeria to realize its ambition of becoming a Trillion Dollar Economy.
Adebajo underscored the necessity of sustainable double-digit growth, leveraging Nigeria’s rich human resources and natural assets, particularly oil and gas. He spoke of improvements in economic stability, especially regarding cost factors like exchange rates and subsidy adjustments, which are encouraging for potential investments. However, he pointed out that the manufacturing sector’s nominal GDP growth was only 4% in 2024, revealing significant challenges.
The CEO emphasized that a revamped industrial policy is essential to diminish import dependence and amplify local production capabilities. He advocated for the establishment of supportive policies for agriculture, manufacturing, and investment to elevate productivity. Citing success stories in industries such as cement and fertilizer, Adebajo called for government incentives to stimulate investments in critical sectors.
Adebajo expressed concern about Nigeria’s increasing debt levels, proposing the sale of certain joint venture assets to reduce debt and bolster productivity foundations. He conveyed optimism regarding the oil sector, suggesting that oil revenues need to be reinvested into other sectors for economic diversification. He believes that with adept policy implementation, Nigeria could achieve growth rates exceeding 6-7% this year, while without these changes, growth may stagnate at around 4-4.5%.
The discussion highlighted the urgent need for Nigeria to revamp its trade and industrial policies to boost economic growth and productivity. Tilewa Adebajo’s insights reflect the importance of addressing the output gap and fostering local manufacturing to decrease import reliance. With appropriate policy measures, Nigeria can harness its wealth of resources and human capital to move towards achieving a Trillion Dollar Economy.
Original Source: www.cnbcafrica.com
