NESG says insecurity, low foreign investments and FX scarcity are challenges to Nigeria’s economic growth

The Nigerian economic summit group (NESG) says the country’s economy no doubt is bedevilled with slow growth, coupled with non-inclusiveness and poor socio-economic conditions.

It added that the economy of the country may further worsen as a result of the persistent reduction in foreign investment inflow, and insecurity as well as foreign exchange scarcity among others.

The group made this known, in her 2022 macroeconomic outlook released earlier on, maintaining that without the implementation of tough sectorial reforms, the impressive performance of the economy in 2021 would not be sustained.

According to The Last Mile released by the group with the title; “The Last Mile: Reforms Towards Significant Improvement in National Economic Outcomes,” emphasises the need for reforms across three major areas including; reforms on the oil and gas sector deregulation and fuel subsidy removal; reforms on the foreign exchange management; and sector-specific reforms that can drive significant inflows of stable investments such as FDI into the economy.

 Meanwhile, the group said ;

Going into 2022, Nigeria has the opportunity to build on current growth performance by initiating tough economic reforms that would remove the constraints on the expansion of sectors of the
economy and enhance their capacity to create jobs and lift millions out of poverty,” it stated.

However as regards the oil and gas sector reform, the report stressed on judicious implementation of the Petroleum Industry Act (PIA) to attract investors into Nigeria’s oil industry, particularly the downstream and midstream segments.

Meanwhile, reacting as regards the oil and gas sector reform, the CEO of NESG Laoye Jaiyeola, said that Nigeria can no longer afford the continuation of the subsidy era as being considered by the federal government.

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