The International Monetary Fund (IMF) says stronger reforms are needed for Nigeria to reach its goal of 3.1% economic growth in 2024.
The IMF’s Resident Representative, Dr Christian Ebeke, said this at the “Invest Nigeria” themed International Business Conference and Expo 2024 held by the Lagos Chamber of Commerce and Industry (LCCI) on Tuesday in Lagos.
Ebeke said that the country needed more changes to its laws and rules about running a business to grow a little faster than the 2.9% rate seen in 2023.
He said that these kinds of measures would change the country’s growth rate into something more stable. But he did say that the country had made progress in its loan market, as well as in its financial and international areas.
“Insecurity, tight financial conditions, multiple taxes, insufficient power and corruption are foremost constraints identified by businesses.
“What comforts the IMF is that the Nigerian government can address these issues, and they are currently being addressed through reforms by the Federal Government.
“And we are encouraged by the fact that these issues can be reversed,” he said.
He said that Nigeria should close the structural gaps like India does by removing 25% of the problems with government and company rules.
In the next three years, the Gross Domestic Product (GDP) could grow by 6.4% if that is done, according to him.
Adegboyega Oyetola, who is the Minister of Marine and Blue Economy, said that Nigeria’s location and wealth of resources made it a great place to invest, especially in the marine and blue economy fields. Even though there were problems, Oyetola said that the government was committed to making the right conditions for economic growth so that big capital would come in.
He talked about some of the ways the government is trying to get people to invest in the marine and blue economy sector. For example, businesses that operate in free trade zones don’t have to pay taxes, and they get help with building infrastructure.
He said that the government had given the marine sector new ways to sell through the African Continental Free Trade Area’s Guided Trade Initiative (GTI) and the Cabotage Vessel Financing Fund (CVFF), among other things.
“Our commitment to the marine and blue economy is demonstrated through ongoing port rehabilitation and modernisation projects. To boost investment, the Nigerian government has introduced a wide range of incentives, including tax reliefs, trade zone benefits, infrastructure development, and financial support. I encourage the business community and investors to take advantage of such incentives to contribute to Nigeria’s economic development and be part of Africa’s promising future,” he said.
