Thursday, December 23, 2019 / 9:36 AM /
Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV
As Nigeria seeks to reposition its economy and drive inclusive growth, the Chief Economist of the Price Water House Coopers (PwC) office in the country, Dr. Andrew Nevin, says an annual capital investment of N40trn is required to achieve bullish growth.
Dr. Nevin gave a presentation on the prospects for deepening the growth of Microfinance banks in Nigeria, at the 2019 Accion Microfinance Bank Financial Inclusion Seminar in Lagos.
He stressed the need for an enabling environment that attracts private capital into critical areas like infrastructure, noting the government has limitations in funding development projects (see Table panels 1-4 below).
According to him, Nigeria will require a robust growth of over 6% to uplift millions from poverty and improve the quality of life of the citizens.
Currently, the economist noted that Nigeria's economic growth rate of 2.28% lags behind that of its population, which is 2.6%.
He opined that private sector investments were critical to driving and deepening Nigeria's economic growth.
According to him, it was imperative for Nigeria to have a robust framework that guarantees private capital investments that can help finance infrastructure and other economic activities.
In the year 2020, infrastructure will constitute part of the core focus of the current administration to deepen socio-economic activities which will provide critical funding beyond the 30% capital expenditure.
The foreign exchange rate regime of Nigeria will constitute another area of consideration for investors who want to invest in the economy.
Table panels 1-4 Nigerian Capital Importation Q2 2019
Source: National Bureau of Statistics (NBS)
According to the World Bank, the Nigerian policymakers should be strategic in their economic reforms agenda, to improve economic activities which should impact the per capita income of Nigerians.