The projection of the World Bank downgrading the growth forecast for Nigeria for 2022 to 3.1 percent from 3.8 percent is a reflection of the current situation facing the Country.
Managing Director of Dignity Finance and Investments Limited, Dr Chijoke Ekechukwu, disclosed this while speaking to the TVC News Nigeria Programme Business Nigeria.
He added that the figures were expected based on what the country has been going through in the last few months.
He disclosed that the Country and experts have also seen that Nigeria is not growing at the required level to reduce poverty and engender development.
He listed the issues which he felt was holding the country back even without the current distortions from the Global upheaval that has affected every Other Economy negatively.
He cited insecurity as a major issue that must be addressed for the nation to return to sustainable growth.
The issue of inflation and the distortions in the management of the nations’ Foreign exchange regime has also made it very difficult for development to follow the path many Nigerians may have wanted.
According to him, the forthcoming 2023 general Elections has become a factor in the thinking of both Local and Foreign investors who will want to know where the pendulum will swing before starting off on investing again.
He listed a slow down in the payment of Local contractors by those in government and the slow down of investment by Local institutional and portfolio investors as Other factors that will determine the return of sustainable growth.
He added that Nigeria’s GDP per capital to revenue ratio is abysmal and must be improved upon before the nation is able to get the required level of revenue to power government Business and enhance infrastructure.
He advocated the removal of Fuel subsidy which he said will ensure a more robust Economy in the country.
According to him the government will have to put in place a very robust and efficient transportation system to ensure people are able to move around and be able to have disposable income once subsidy is removed.
He disclosed that failure to address this and Other important side issues will lead to chaos.
He however said this may also bring new innovations and discovery for people to adjust and move forward.
He however insisted that subsidy removal will be beneficial in the long run.
On the effect that Developmental plans by government will have on the Economy, he said they have to be properly implemented before they could be said to have an impact.
He said the Political will needs to be iron cast before the plans will have an impact since States and the Federal Government may have different priorities in their respective spheres of Influence.
