NESG outlines four priority areas to unlock growth in Nigeria

The Nigerian Economic Summit Group (NESG) has identified four critical priority areas that Nigeria needs to address in order to unlock growth and drive economic recovery in 2021. These priority areas, as outlined by Wilson Erumebor, a Senior Economist at NESG, include macroeconomic stability, human capital development, holistic sectorial reforms, and policy and regulatory consistencies. Erumebor sat down with CNBC Africa to discuss the NESG's recent report on the Nigerian economy and shed light on the path forward for the country's economic growth. The report highlights both the challenges faced in 2019 and 2020, compounded by the global pandemic, as well as underlying issues that preceded the crisis. Factors such as rising prices, trade deficits, and declining reserves had already put pressure on the economy before the onset of COVID-19. Erumebor emphasized the need for strategic interventions to address these challenges and steer the economy towards sustainable growth. One key recommendation from the NESG is to leverage private sector investments to boost aggregate demand and production in the economy. However, Erumebor acknowledged that attracting investments entails risks and the importance of implementing reforms to create a conducive environment for both local and foreign investors. The NESG's four priority areas serve as a roadmap for policymakers to drive the necessary reforms: macroeconomic stability, policy and regulatory consistency, sectorial reforms, and human capital development. While consolidating these priorities may seem straightforward, Erumebor highlighted the complexities involved in translating them into actionable strategies, especially given the historical context and current security challenges in Nigeria. Additionally, the report underlines the untapped potential of state governments in driving economic growth. Erumebor emphasized the need for states to move beyond relying solely on federal allocations and instead focus on leveraging local resources and partnerships for development. By empowering state governments with legislative authority and encouraging collaborations with the private sector, Nigeria can unlock new opportunities and drive sustainable growth at the sub-national level. The report also emphasized the importance of data-driven decision-making at the state level, citing the lack of comprehensive GDP data for all 36 states in Nigeria as a hindrance to identifying key economic drivers and opportunities. Erumebor pointed out successful examples of state-level partnerships, such as the Lagos-Kebbi Rice initiative, and encouraged more states to explore similar collaborative ventures to stimulate industrial growth. Ultimately, the NESG's report serves as a call to action for stakeholders at both the federal and state levels to prioritize the identified areas of focus and work towards building a resilient and inclusive economy in Nigeria. By addressing the root causes of economic challenges, fostering a conducive investment climate, and empowering state governments to drive local development, Nigeria can unlock its full economic potential and chart a path towards sustainable growth and prosperity.