Experts seek favourable business policies to spur GDP growth

Financial experts have urged the Federal Government to initiate favourable macroeconomic policies that will support local industries to spur Gross Domestic Product (GDP) growth and enhance productivity.

They said this in separate interviews with the News Agency of Nigeria (NAN) on Tuesday in Lagos.

Dr. Austine Nwaeze, former lecturer of Economics, at Pan Atlantic University, said that the introduction of the right economic policies to support domestic industries would increase the nation’s GDP growth.

“Both fiscal and monetary policies should be tailored to enhance our industries including revamping moribund manufacturing firms.

“This is very important now that the business climate is quite challenging coupled with supply chain disruptions,” Nwaeze said.

He added that the Federal Government should invest in critical infrastructure because it would stimulate productivity in the economy.

“Issues relating to electricity should be made more stable, especially in business hubs across the country, while making sure that the railway becomes operational to convey commodities and incentivise businesses,” he said.

Prof. Sheriffdeen Tella, Head of the Department of Economics, Olabisi Onobanjo University, Ogun State, said the adoption of Public Private Partnership (PPP) to address developmental projects would raise the GDP growth.

“The Federal Government should consider utilising more of PPP to fix key infrastructure because of its current poor fiscal position,” Tella said.

He noted that government revenues had decreased recently, adding that some developmental partners were reluctant to issue new loans to Nigeria.

Tella said that the Federal Government should scale up its crude oil export to boost the country’s GDP.

“Addressing issues of crude oil theft and pipeline vandalism is sacrosanct because it is one of the drawbacks undermining the growth of the economy,” he added.

Tella said that the Federal Government needs to resolve the headwinds affecting crude oil exports to meet the OPEC quota.

The Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said the Federal Government should improve the business climate to expedite economic growth.

“The authorities should address the widespread insecurity undermining the confidence of foreign direct investors on our shores.

“The headwinds associated with accessing foreign exchange should be resolved to sustain existing businesses,” he said.

He noted that the Federal Government should invest more in the real sector because it would create employment for the people and grow the economy.

NAN reports that the National Bureau of Statistics (NBS) has said Nigeria’s Gross Domestic Product (GDP) grew by 2.25 percent on a year-on-year basis in the third quarter (Q3) of 2022.

The bureau, however, stated that Nigeria’s GDP declined from 3.54 percent in Q2 to 2.25 per cent in Q3 2022.

The reduction in growth is attributable to the base effects of the recession and the challenging economic conditions that have impeded productive activities.

However, quarter-on-quarter, real GDP grew at 9.68 per cent in Q3 2022, reflecting a higher economic activity during the review period when compared with the preceding quarter. (NAN)

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