Industrialization, Key To Driving Double-Digit Growth in Nigeria - Rencap

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Thursday, May 16, 2019  /  09:22AM  /  Ottoabasi Abasiekong  for Proshare WebTV

 

Renaissance Capital has made a strong case for Nigeria to drive industrialization because of its potential for driving double digit growth.

This was part of recommendations of Chief Global Economist of Rencap Mr Charles Robertson, during his presentation at the 10th Pan African Investor Conference of the Investment Bank in Lagos.

Speaking on the topic “Structural Reform & Diversification from Oil Dependency-Key to Industrialization”, Robertson believed in the long-term focus real-time industrialization can deliver with a growth rate of between 7% and 11%, which will exceed the pace of population growth which is currently 3%, or higher than the country’s recent GDP growth rate of 2.31%.

He noted that this must be achieved alongside an increase in adult literacy by over 70%  across the country.

In terms of infrastructure, Robertson stressed that Nigeria needs to double electricity consumption from the national grid, and double the investment share of GDP.

 

A Spending Shift

The economist called for a shift in spending on consumption to that of investments, which is vital to spurring economic activities in the country. He called on policy makers to do everything possible to improve the ease of doing business in the country, to attract investments.

He warned that the rising population of over 190million portends danger if economic opportunities are not created to make use of the latent energy and creativity of this population.

 

Enabling Business

Delivering the keynote address at the event, the Executive Secretary and CEO of the Nigeria Investment Promotion Council, Ms Yewande Sadiku, restated the commitment of the Federal Government to creating an enabling environment for businesses and investments.

She said the NIPC recently achieved the compilation of fiscal incentives   in Nigeria’s tax laws and duly approved sector-specific incentives, which cover 6 principal areas namely;

  • Investment Policies and Protections
  • General Tax-based Incentives
  • Sector-specific incentives
  • Tariff-based incentives
  • Export Incentives
  • Special Economic Zones

 

Sadiku also informed the investment community that the NIPC has also engaged in active collaboration with critical government agencies like the Corporate Affairs Commission, National Electricity Regulatory Commission, NERC, Standard Organization of Nigeria, SON, Nigerian Customs Service, NCS  and  the Federal Inland Revenue Service, FIRS to provide a seamless process to facilitating an attractive investment climate in the country.

Other initiatives highlighted include;

  • The Pioneer Status  Incentive Scheme which issued new guidelines in 2017
  • The publishing of the “IGuide” an easy-to-use online investment guide that provides investors with up-to-date and relevant information on the processes, procedures and costs of doing business in Nigeria
  • The Nigerian Investment Certification Programme designed, to provide reliable information to investors on the 36 states of the Federation.

Search for Inclusive Growth

Giving his remarks at the event the CEO of  Rencap Nigeria Mr Temi Popoola tasked newly elected officials that will be at the helm of the organisation between 2019 and 2023, to give top priority to policies that can drive inclusive economic growth in the country.

“This is the right time to begin to focus on policies that will deliver inclusive growth in the next four years. We believe that diversification from oil dependency is inevitable given how little oil Nigeria exports per capita. To fully unlock Nigeria’s economic potential, some structural constraints must also be removed: adult literacy needs to improve to 70-80%, electricity consumption needs to treble and investments need to double from 13% of  GDP in 2017 to at least 25%”. Popoola said.

The event featured a series of one-on-one business meetings and sessions with representatives from about 30 corporate organisations.


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