Economic experts have said that only by refocusing subsidies as productivity incentives in key sectors with clear return on investment (ROIs) can Nigeria hope to achieve an effectual economic output be realised.
At the just concluded second edition of the Business Breakfast Meeting organised by Igbobi College Old Boys Association in collaboration with OA & FA consulting and pcl in Lagos, stakeholders said that providing incentives to attract foreign direct investment (FDIs) into strategic sectors has the potential to create jobs.
In addition to accelerating the implementation of fiscal and tax reforms will help the government deliver on its economic projections, which would drive growth in the economy.
According to the economic experts, the review of outdated trade and investment policies and regulations will help to stimulate and encourage investments in high-growth sectors such as agriculture and manufacturing which will help Nigerians beat the unemployment challenges and engineer economic growth.
They also said that implementing government-private incorporated Joint ventures will facilitate the introduction of fiscal subsidies in key industries and address logistics issues and infrastructure challenges impacting businesses and agricultural production.
Ensuring effective collaboration between monetary and fiscal policies and the recapitalisation of financial services like the insurance sector can expedite the development of the economy, said Kunle Elebute, chairman/CEO, Gerrard Capital Advisory Services.
He said the sustainability of ongoing fiscal, monetary, trade and industry reforms by the government and the stimulation of the potentials of strategic sectors would shape the economic outlook for 2025 and beyond.
Elebute pointed out that driving revenue generation to fund the 2025 Budget and addressing debt sustainability funding, and executing the expansionary budget by the Federal Government would be very critical in driving economic growth.
Speaking on the theme ‘Nigeria’s Economic Outlook 2025’, Elebute explained that Nigeria can push up its drive for economic growth if the federal government accelerate the implementation of fiscal and tax reforms while ensuring effective collaboration between monetary and fiscal policies.
He added that implementing government-private incorporated Joint ventures and facilitating the introduction of fiscal subsidies in key industries can boost logistics issues and infrastructure challenges impacting businesses and agricultural production
Doyin Salami, senior lecturer at Lagos Business School, during the panel discussion at the event said private sector involvement is required to fill in the gaps and drive infrastructure development.
Salami said that to achieve any meaningful economic reform in Nigeria, the Federal government should focus on core areas like human capital, security and address failures in past reforms.
According to him, there should be a clear division of responsibilities between the government and the private sector, and there is a need to incentivise the private sector to participate in the growth drive.
Olawale Abiola, partner/Co-founder of OA & FA consulting, a co-sponsor of the event, said that the Business Breakfast meeting plays a vital role in promoting private sector involvement in Socio-economic issues of the country and provides an opportunity for Igbobi College Old Boys Association to share knowledge and network.
On his part, Femi Olubanwo, president of Igbobi College Old Boys Association, said events such as this can advance collaboration between public and private sectors to achieve economic prosperity for Nigeria.
Olufemi Awoyemi, founder and chairman of Proshare LLC, said the government needs to incentivise its taxation approach so that it can drive productivity
He urged the government to urgently tackle inefficiencies, loopholes, waste, abuse and fraud and make an effort to dislodge non-state actors in the tax regime.
Folasade Femi-Lawal, country manager, West Africa of Mastercard, said Nigeria has a thriving fintech ecosystem with significant growth potential and urged the government to adapt its regulations to the rapid evolution of fintech, including AI and open banking.
According to her, there are opportunities in digital transactions and financial inclusion should be leveraged, while advocating for better access to funding for SME’s.
Oluseyi Olarenwaju, group chief financial officer of SecureID Limited Group, said the increased telecom tariffs will impact businesses and individuals as businesses will face higher costs, potentially leading to reduced profits.
Olarenwaju said that the increased tariff could also drive competition in the telecom sector because poor telecom services impact businesses negatively.
He called on the fiscal policy committee to consider the telecom sector as a basic need, and reduce taxes on it.
