Kairos Capital CEO on how to drive inclusive recovery in Nigeria

Nigeria, the largest economy in Africa, has technically exited a recession, but the lingering effects of the economic downturn continue to loom large. As the government seeks to navigate a path towards sustainable recovery, the need for inclusive growth and development takes center stage. In a recent interview on CNBC Africa, Sam Chidoka, the CEO of Cairo's Capital, shared his insights on the current economic landscape and the challenges facing the Nigerian government. Chidoka acknowledged the positive news of exiting the recession but highlighted the importance of achieving robust growth rates above 3% to drive meaningful impact across sectors. He emphasized the crucial role of agriculture, a key sector for employment, in spurring economic development and reducing poverty levels. While the World Bank had initially projected a negative growth rate of 4% for Nigeria in 2020, the actual figure of around -1.9% indicated a better-than-expected outcome. However, Chidoka underscored the imperative of attaining a growth rate of 5% to 6% for sustainable progress. Inclusive growth emerged as a pivotal aspect of Nigeria's recovery journey, with Chidoka stressing the need to uplift the millions living below the poverty line. Citing India's success in lifting millions out of poverty within a decade, he urged for a strategic focus on inclusive policies and initiatives to replicate such achievements in Nigeria. With approximately 100 million Nigerians currently below the poverty line and projections indicating a potential rise in poverty levels, the urgency for inclusive and impactful growth strategies becomes paramount. The conversation shifted towards the role of the private sector in driving economic growth and investment. Chidoka emphasized that a private sector-led approach was essential for leveraging resources and expertise towards fostering sustainable development. Highlighting the declining trend in foreign direct investments and domestic capital inflows in recent years, he called for enhanced policy support to attract both local and international investments. Drawing parallels with countries like China and India, which successfully utilized private sector partnerships to drive economic transformation, Chidoka emphasized the importance of learning from global best practices. Addressing key challenges faced by the Nigerian government, Chidoka outlined several critical areas that necessitate attention for fostering a conducive environment for growth. Firstly, he underscored the significance of ensuring security across the nation, as persistent security concerns can deter investments and hamper productivity. Secondly, he highlighted the importance of promoting fairness, equity, and justice to underpin growth and stability. Additionally, investing in vocational skills development to complement formal education was deemed essential for enhancing productivity and competitiveness in the labor market. Chidoka reiterated the importance of maintaining policy consistency and engaging stakeholders to ensure a coherent and supportive regulatory framework for investors. By fostering an enabling environment that prioritizes security, fairness, skills development, and policy coherence, Nigeria can lay the foundation for sustainable and inclusive economic growth. As Nigeria seeks to chart a path towards recovery and resilience, the insights shared by industry experts like Sam Chidoka provide valuable guidance on navigating the challenges and opportunities inherent in the country's economic landscape. By prioritizing inclusivity, private sector engagement, and strategic policy interventions, Nigeria can unlock its vast potential and pave the way for a more prosperous future.