Wednesday, September 19, 2018 11.40AM / Proshare WebTV
At the recent 11th edition of the annual banking and finance conference in Abuja, Nigerian economist Mr Bismark Rewane was the guest speaker at the business session one which discussed “MSME Financing Gap: The Critical Role of Micro-Funding”.
In his presentation Mr Rewane established the fact that Nigeria’s economy was growing but was not sustainable, accelerated or inclusive.
He shared that it was possible for an economy to have some positive developments, that comes with their attendant negative impact.
Giving further insight on the components of growth, he identified Productivity as the key issues especially Labor productivity as skills, training and strong work ethic, were vital for any viable economy.
The economist said fast growth was not sustainable, and noted that some countries like Democratic Republic of Congo and Angola are experiencing high GDP growth but low level of development.
Countries with high GDP growth have trickle down effects on the citizens, which drives inclusive growth. Examples of such countries include: Singapore with an income per capital of over $70,000 and life expectancy of 85%.
Rewane believed there was a strong correlation between investment and economic growth, looking at nations like Singapore, China and India.
The CEO of Financial Derivatives told stakeholders that Nigeria cannot advance as an economy, with a gross profit investment of 13.4%, harping on the need to attract critical investments.
Citing examples Mr Rewane shared that in one year the following countries, received these amount of inflows;
1.United States of America - $379bn
2.Hong Kong- $174bn
3.Ireland - $5bn
He decried the fact that Nigeria is more of a consumptive economy, with consumption representing 79% of the nation’s total GDP.
Rewane identified the following as some of the constraints to the nation’s growth:
1. Lack of work ethic and productivity,
2. Lack of Skills that are globally competitive
3. Poor Infrastructure
He made a strong case for Nigeria to value research and innovation, stating that Samsung Electronics accounts for 20% of South Korea’s total GDP.
According to him “I want you to show me one company in this country that has massive investment in laboratories that come up with new inventions, all we do is copy somebody else’s, but we have no less that 19 commodities that we should have number one comparative advantage ranging from yam, cassava, sesame seeds, soya, ginger. It is only sesame seeds and cocoa we’ve gone all the way to number six, even Cameroon is now ahead of us”.
PART ONE PART TWO