Nigeria’s 2024 economic growth depends on stronger reforms: IMF

The International Monetary Fund (IMF) has stated that Nigeria’s projected economic growth of 3.1% for 2024 hinges on the implementation of stronger reforms.

Dr. Christian Ebeke, the IMF Resident Representative, made this statement during the Lagos Chamber of Commerce and Industry (LCCI) International Business Conference and Expo 2024, themed “Invest Nigeria,” held on Tuesday in Lagos.

Ebeke noted that for Nigeria to achieve a slight increase from the 2.9% growth rate recorded in 2023, the country needs to implement further reforms in governance and business regulations. He emphasized that such reforms are essential to creating sustainable growth momentum.

“Insecurity, tight financial conditions, multiple taxes, insufficient power and corruption are foremost constraints identified by businesses.

“What comforts the IMF is that these issues can be addressed by the Nigerian government, and they are currently being addressed through reforms by the Federal Government.

“And we are encouraged by the fact that these issues can be reversed,” he said.

He said that Nigeria should close the structural gaps like India, by reducing governance and business regulation bottlenecks by 25 per cent.

According to him, if that is done, the Gross Domestic Product (GDP) output can be lifted by 6.4 per cent in the next three years.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, said that Nigeria’s strategic location and abundant resources presented vast investment opportunities, particularly in the marine and blue economy sectors.

Oyetola said that in spite of existing challenges, the government was committed to creating an enabling environment to foster economic growth to attract significant investments.

He highlighted some of the government’s incentives designed to drive investment in the marine and blue economy sector to include tax exemptions for businesses operating in free trade zones, and infrastructural support.

Speaking at the occasion, Gov. Babajide Sanwo-Olu of Lagos state, said that the state, being Africa’s economic hub, offered a conducive business environment, a strategic location, a vast market, and a pool of energetic talents.

Sanwo-Olu said that his administration had implemented and continued to implement policies and initiatives to attract investments, create opportunities, and drive growth.

He said that one key area of focus for the state was infrastructure development.

He said that the state was upgrading and expanding transportation and logistics networks, telecommunications, healthcare, education and digital ecosystem infrastructure.