Microeconomic Outlook: NESG proposes policy measures to achieve broad-based growth
NAN-HE-12
Policy
By Cecilia Ologunagba
Abuja, Jan. 22, 2018 (NAN) The Nigerian Economic Summit Group (NESG) has proposed policy measures for the Federal Government to achieve broad-based and sustained growth in 2018 and beyond.
The NESG made the proposal in its 2018 Macroeconomic Outlook “Will Nigeria’s growth be inclusive in 2018 and beyond?’’ posted on the group’s website.
NESG stated that the first pillar to achieve a sustainable economy was to develop growth to create Jobs and economic opportunities.
The group, however, emphasised on implementing the growth enhancing policies including providing intervention funds in key sectors of the economy to spur economic growth.
The NESG stated that the government should implement the growth enhancing policies in agriculture, manufacturing, construction and transportation sectors to boost the economy.
It also recommended that the government should maintain macroeconomic stability and exchange rate stability by sustaining existing policies that would ensure foreign exchange (FX) availability.
“It should ensure price stability by intervening urgently to prevent fuel scarcity, provide interventions in the agricultural sector to increase food supply and ensure availability of FX
“The government should maintain favourable interest rate, which will spur economic growth.
“It should implement ease of doing business reforms across states Implement reforms to reduce regulatory bottlenecks across sectors.’’
According to the outlook, the government should review and pass ease of doing business legislations to open up key sectors for investment.
In addition, the group advised that the Federal Government should work with state governments to review and implement reforms aimed at improving business environment, based on World Bank’s Ease of Doing Business Indicators.
It stated that it should review and Implement the Nigerian Industrial Revolution Plan (NIRP).
NESG, however, observed that the Economic Recovery and Growth Plan (ERGP) had also promised to accelerate the implementation of the NIRP.
It stated that ERGP promised to accelerate the implementation of NIRP which provided a clear strategy to develop sectors such as light manufacturing, agro-processing, metals and solid minerals, oil and gas and services.
“The NIRP also identifies seven support structures to include infrastructure, skills, innovation, investment climate, standards, local patronage and finance.
“We believe that if NIRP is appropriately implemented, Nigeria will achieve a well-diversified economy, with the productive sectors contributing significantly to GDP growth and unemployment reduction.
“It will achieve a well-diversified government revenue base, export and FX earnings as a result of expansion in manufacturing and agricultural sectors.
“It will also Increase the capital budget performance to stimulate the construction sector and enhance provision of infrastructure.’’
In addition, the group advised the government to embark on procurement reforms to reduce delays and inefficiencies in the budget process.
It stressed the need to strengthen monitoring and evaluation capacity within government as well as focusing on targeted infrastructure projects that could spur growth of the industrial sector.
It also advised on the need to implement the debt rebalancing strategy to reduce interest payments on government debts and free-up funds for capital projects. (NAN)
CIA/AFA
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Edited by Felix Ajide