Nigeria Economic Growth Outlook Positive
March 21, 2018
Nigeria Economic Growth Outlook Positive
The Nigeria minister of finance Kemi Adesoun on Tuesday disclosed that the Nigeria economic growth and outlook for the year 2018 is very positive even for the years ahead.
According the Minister, she stressed that the country is becoming stronger after recession that rocked its economic boat likewise now have the potential to achieve seven percent economic advancement In the next two to three years ahead.
She made this briefing at the 4th Ogun State Investors forum attended by the Vice President Yemi Osinbanjo, Ogun State Governor, Senator Ibikunle Amosun, former President of Mexico, Felipe Calderone, and dignitaries as well Captains of Industries across the country.
Adesoun claimed that the current administration has succeeded in building macroeconomic resilience for the country, especially revisiting the funding mix, rebuilding fiscal buffers, enhancing foreign exchange reserves with an eye on import substitution strategies to further encourage Nigeria economic growth.
According to her “President Muhammadu Buhari has laid the foundation for repositioning of the economy with various reforms which are being sequenced to ensure maximum impact and benefits to Nigeria and the citizens.”
“These include massive investments in infrastructure and social welfare across the country, improved revenue mobilization, rebuilding of foreign reserves and stabilization of exchange rate.”
The nation’s economy had returned to the right path in growth towards the second quarter of 2017 after five successive quarters of negative index.
Nigeria exited recession with a growth of 0.72 percent, to further extend to 1.40 percent and 1.92 percent in the third and fourth quarters of last year respectively. Which indicates Nigeria economic growth in a desired direction.
According to the Minister, the quick reversal of event of the recession indicates “Less damage” was done to the economy and provided an opportunity for faster and positive growth in recovery process. Having seen revenue and growth in the right path, Adesoun said the government will increase the fiscal space for infrastructures and spending as well in the right direction.
She continued “Revenue mobilization is usually the master key to unlocking Nigeria economic growth, huge potential and funding the infrastructure programmes.
“The federal government in its capacity will not relent in creating more fiscal space for reforms and enhance productivity and opportunity in non-oil sector.
“Greater focus will as well be placed on cost efficiency, blocking revenue leakages and continued support to states.”
Recalling the actions taken by the administration on assumption of office in May 2015, the Minister said it had two options of “balancing our books by cutting down on expenses and also investing in infrastructure and the economy.”
“If we had gone for the first option of cutting down our costs, it means we would have laid off workers. But we chose to stimulate the economy with massive investments in roads, power, rails and other infrastructures as part of deliberate efforts to grow the economy.
“We have invested over N2.5 trillion in infrastructure, especially on capital projects between 2015 and 2017. If you move round the country, you will see on going works in roads, power, bridges, rails and other projects. These are important building blocks for the Nigerian economy.
“Look at the road sector when we came in, it was N19 billion that was invested in the sector in 2015. We invested N307.4 billion on roads in 2016 and N208 billion in 2017.
“Capital spending for transport sector has also been remarkable. It was N6.49 billion in 2015, N143.1 billion in 2016 and N133.9 billion in 2017. From where we are coming from, it is a huge chunk, taking it from N6 billion to N133 billion. And there are so many other projects and sectors like that, the Minister stressed.
Giving his address at the investors forum, with a theme ‘Consolidating the Gains and Accelerating Growth, Governor Ibikunle highlights that the state attracted 148 new industries that invested between a minimum of $200 million and I excess of $2 billion in the past seven years. The State government had improved the enabling environment for business growth in the State.
According to him “No investment can flourish in an insecure environment. We made significant investments in our security infrastructure and architecture, and built strong collaborations with the security services, so as to guarantee the security of lives and property.
The governor also disclosed that the state government has entered into partnership with a private firm to develop the Lisabi Independent Power Project in Abeokuta.
“The 12 megawatts power plant has been concluded and is ready for commissioning. We have also signed MoUs with eight private power providers for the establishment of total of 314 megawatts IPP in different parts of our State.
Governor Ibikunle assured existing and intending investors of safety of their investments in the state, adding that improved approaches have been adopted by the state government to consolidate the efforts and gains of the previous years in business which will continue to stimulate the Nigeria economic growth, positively.
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