Can non-oil sector sustain Nigeria's recovery?

Nigeria's non-oil sector has taken center stage in the country's economic recovery, with a significant 94.3% contribution to the economy in the third quarter of this year. This growth has been attributed to various segments within the sector, such as ICT and entertainment, which have shown promising signs of development. Chijioke Odo, the Leader for West Africa Global Trade Advisory at Deloitte, shed light on the factors driving this growth during an exclusive interview with CNBC Africa. Odo highlighted the resilience of the ICT sector amidst the challenges posed by the COVID-19 pandemic, emphasizing the sector's ability to adapt and innovate in response to changing business dynamics. While the non-oil sector thrives, challenges persist in areas like manufacturing, where issues like Forex constraints and tax regimes have hampered growth. Odo underscored the need for a balanced approach to taxation, pointing out that overtaxing industries like manufacturing could diminish profits and stifle expansion. He urged the government to carefully consider the impact of taxation on businesses and consumers, advocating for targeted incentives and waivers to stimulate growth in key sectors. Looking ahead, Odo emphasized the importance of a strategic approach to tax reforms and incentives in the upcoming Finance Bill 2022. He called for a shift towards a more scientific and pragmatic taxation system that ensures compliance, fairness, and sustainable revenue generation. In particular, Odo proposed incentivizing the real estate and manufacturing sectors to foster continued growth and development. As Nigeria navigates its economic recovery journey, the spotlight is on the non-oil sector as a key driver of growth and resilience. With strategic policy interventions and targeted support, the sector holds the potential to propel Nigeria towards sustained economic prosperity.