The International Monetary Fund (IMF) has stated that Nigeria could achieve its projected 3.1% economic growth for 2024 by implementing stronger reforms in governance and business regulations. Christian Ebeke, the IMF’s resident representative in Nigeria, made this announcement on Tuesday during the Lagos Chamber of Commerce and Industry (LCCI) International Business Conference and Expo 2024, themed “Invest Nigeria.”
Ebeke highlighted that the IMF recently revised its growth forecast for Nigeria to 3.1% in 2024, down from 3.3% projected in April. He emphasized that for Nigeria to surpass the 2.9% growth recorded in 2023, reforms are essential to transform short-term growth momentum into sustained economic expansion.
Identifying key constraints such as insecurity, tight financial conditions, multiple taxes, insufficient power supply, and corruption, Ebeke expressed optimism that these issues could be mitigated through ongoing reforms by the Nigerian government. He suggested that by reducing governance and business regulation bottlenecks by 25%, similar to India’s approach, Nigeria could boost its GDP output by 6.4% over the next three years.
Despite these challenges, Ebeke acknowledged progress in Nigeria’s credit market and financial and external sectors, signaling positive economic development.
Government’s Efforts to Boost Investments and Economic Growth
Speaking at the same event, Adegboyega Oyetola, Minister of Marine and Blue Economy, emphasized Nigeria’s strategic location and abundant resources as drivers of vast investment opportunities. Oyetola stated that the government is committed to creating a favorable environment for economic growth and attracting significant investments, particularly in the marine and blue economy sectors. He highlighted government incentives such as tax exemptions for businesses operating in free trade zones and infrastructural support to boost investment.
Lagos State Governor Babajide Sanwo-Olu echoed these sentiments, noting that Lagos, as Africa’s economic hub, offers a conducive business environment, strategic location, and a pool of energetic talent. Sanwo-Olu underscored his administration’s commitment to implementing policies and initiatives that attract investments, create opportunities, and foster economic growth. These measures include tax breaks, streamlined regulatory processes, and a reliable judicial system that upholds contracts and property rights.
Calls for a Stable Economic Environment
Gabriel Idahosa, President of the LCCI, emphasized the importance of creating a stable and enabling environment to support business growth, encourage innovation, and attract local and international investments. Idahosa pointed out that Nigeria, being Africa’s largest economy with a burgeoning middle class and a youthful population, has vast potential. He called for government policies that attract foreign investments to establish manufacturing facilities in Nigeria, reducing reliance on imports and promoting economic self-sufficiency.
The conference highlighted the critical role of strategic reforms and government support in driving Nigeria’s economic growth and stability, encouraging collaboration among government officials, business leaders, and international partners to unlock the country’s full economic potential.