NESG: Deregulation of oil sector, FX management will drive stable investments

The Nigerian Economic Summit Group (NESG) says the federal government should make effective policy decisions to create jobs and lift millions out of poverty in 2022.

NESG said this on Tuesday at the launch of its 2022 Macro-Economic Outlook in Abuja.

In his opening remarks, Asue Ighodalo, chairman of the NESG, said the report aims to critically analyse the Nigerian economy and help create an enabling environment that catalyses economic growth.

The think-tank advocacy group said constraints in the government’s policy in 2021 affected productivity and increased investment risk.

“The issue of foreign exchange shortage and divergence of interest rates, as well as other policy constraints. These continue to limit sectoral productivity, elevate investment risks, slow down job creation, and worsen trade balance, resulting in a dearth of long-term investments required to achieve high and sustained economic growth,” the outlook reads.

“The widening fiscal deficit and other constraints that are required to quickly turn around the situation are also worrying for the country’s economic future. Therefore, there is need for a paradigm shift in the policy environment to avoid the reversal of the current pace of economic recovery.”

The group further said that the government as well as other stakeholders must take note of the opportunities in 2022 despite issues such as insecurity, foreign exchange scarcity, declining foreign investment inflows, sectoral rigidity, infrastructure deficit, inadequately skilled workforce, policy inconsistency, and other regulatory bottlenecks.

It listed the oil and gas sector deregulation and fuel subsidy removal, foreign exchange management and sector-specific reforms that can drive significant inflows of stable investments such as Foreign Direct Investment (FDI) into the economy.

The group called for swift implementation of reforms as soon as possible to create more jobs and lift millions out of poverty.

While delivering a part of the presentation, Laoye Jaiyeola, NESG CEO, said that the 2022 macroeconomic outlook was fundamental and pertinent for every aspiring office holder to pay attention to the economic outlook and stay aware of the challenges facing the nation.