The Nigeria Economic Summit Group (NESG), a private sector think-tank organisation that promotes sustainable growth and development in the Nigerian economy has called on the Federal Government to make necessary moves in edging the country’s economy forward.
This was expressed in a statement signed by Asue Ighodalo, Chairman, Board of Directors, NESG following the first 2020 meeting of the NESG board members.
After a review of the global and domestic economy, NESG affirmed that the Nigerian economy, despite being on the path to recovery following the 2016 recession, remains fragile and susceptible to shocks owing to changes in external conditions and oil price fluctuations.
The Board noted that 10 out of the 46 sectors of the economy, contributing approximately 27.1 percent of output, contracted in 2019 partly caused by issues which include rising incidences of insecurity and continuing closure of the nation’s borders.
The NESG commended the government’s efforts in easing the business environment but called for more reforms to fully achieve a conducive business environment. According to the statement “The NESG acknowledges continuing progress on Ease of Doing Business and commends the work of the Presidential Enabling Business Environment Council (PEBEC). The next level of reform which will further improve Ease of Doing Business must focus on areas which include: Power Supply; Ports Administration; and Rail Infrastructure Development.” It read.
The board also proffered that the country must leverage on the Public-Private Partnership (PPP) model to tackle the challenge of infrastructure financing. Therefore it urged the government to strengthen laws governing PPP agreements and also demonstrate commitment towards maintaining the agreements and protecting investors.
Regarding the African Continental Free Trade Agreement (AfCFTA), the board noted that there is need to commence work towards ensuring alignment of domestic policies and regulations with the agreement, adding that it was necessary to accelerate the implementation of trade readiness priorities in order to gain maximum benefit from AfCFTA.
On the border closure exercise, the NESG asked the government to work with its regional neighbours in resolving the issues and reopening the borders as the adverse impact of border closure, especially on trade, employment and cost are mounting.
Due to the outbreak of Coronavirus, the board said the global economy has an obscured outlook. However, it advised the government to upgrade the national preventative readiness and ensure adequate capacity to isolate any infected entrants into the country considering its relationship with China.
