Tilewa Adebajo, CEO of CFG Advisory, advocates for Nigeria to revamp its trade and industrial policies to stimulate economic growth. He emphasizes the need for sustainable double-digit growth to close the country’s output gap and reach a Trillion Dollar Economy. Addressing manufacturing challenges and implementing supportive policies are crucial for advancing productivity and attracting investments.
Tilewa Adebajo, the CEO of CFG Advisory, asserts that Nigeria must overhaul its trade and industrial policies to stimulate economic growth and close the output gap. With a 3.4% GDP growth rate deemed inadequate for a nation of 200 million people, Adebajo advocates for sustainable double-digit growth to realize Nigeria’s aspiration of becoming a Trillion Dollar Economy. He points to the country’s vast human and natural resources, including oil and gas, as catalysts for potential expansion.
Adebajo highlighted the need for a progressive industrial policy to reduce import dependency and promote local manufacturing. He stresses that addressing challenges in the manufacturing sector, which experienced only a 4% nominal GDP growth in 2024, is critical. Implementing policies that support agriculture and manufacturing can enhance productivity and output, creating a favorable environment for investment.
Citing successful sectors such as cement and fertilizer, Adebajo calls on the government to create incentives to attract investments and boost key industrial segments. He emphasizes the importance of stable economic conditions, particularly with regards to the exchange rate and fuel subsidies, to foster growth and encourage investments. Furthermore, Adebajo highlights the risks associated with rising national debt levels and advocates for optimizing capital structure through strategies like divesting certain joint venture assets.
Adebajo expresses optimism regarding the oil industry’s potential, recommending that revenues from oil be reinvested in diverse sectors to strengthen the economy. He projects that, if the right policies are adopted, Nigeria could achieve a growth rate of over 6-7% this year. However, he cautions that without significant policy shifts, growth may stagnate at around 4-4.5%. Proactive policy decisions are essential for economic prosperity in Nigeria.
In summary, Tilewa Adebajo of CFG Advisory argues for a transformative approach to Nigeria’s trade and industrial policies to achieve sustainable economic growth. He cites the significance of local manufacturing and reducing reliance on imports as key elements. Adebajo highlights the necessity of strategic incentives and investment in key sectors to reach the desired growth goals.
Original Source: www.cnbcafrica.com
