Monday, March 22, 2021 / 10:00AM / Ottoabasi Abasiekong for WebTV /
Header Image Credit: WebTV
Nigeria must take bold steps
through pragmatic economic policies to address its troubling misery index. Dr.
Biodun Adedipe a seasoned economist and Chief Consultant, BAA Consult stressed
this in a recent conversation on "Policy Steps to Tackle Nigeria's Rising
He observed that in the past
eight (8) years Nigeria's misery index has risen astronomically, depicting the
challenging economic situation of high unemployment (33.1%),
high inflation (17.33%), and slow GDP
Adedipe admitted that Africa's
largest economy with a population of over 200m people, required robust policies
that could drive inclusive economic growth.
According to him the management
of the country's unemployment level was critical, to address issues like youth
restiveness and agitations.
He noted in retrospect that
Nigeria in the 1980s, had a thriving manufacturing and agricultural
sector that provided jobs. He observed that in the 2000s, the advent of digital
technology was an opportunity to drive faster economic growth.
With the impressive performance
of the Information and Communications Technology (ICT) Sector contributing
majorly to the nation's GDP growth in double-digits, he made a strong
case for investment in digital skills that will
make Nigeria globally competitive.
Apart from ICT, Manufacturing,
and Agric Dr. Adedipe also identified Real Estate as a sector of systemic
importance to the economy. This he noted stemmed from the value chain and
economic activities from construction, building, and housing projects.
Speaking further he stated that
growth in the real estate sector will positively affect the economy and create
One of the areas he underscored
was the ability for the governments at the Federal and State levels to
incentivize investments into "Affordable Housing", which would have multiplier
effects on the economy.
The economist acknowledged that
Nigeria had a large service sector, but lacks a strong manufacturing base to
rest on like the United Kingdom and the United States.
"As a country we need policies
that provide the incentives for attracting private capital into the economy, to
boost industrialization and support key sectors of the economy," he said
For the 278th Monetary
Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) which
commences today, Adedipe said the MPC faces a dilemma of rising inflation (17.33%),
slow growth (0.11%), and devaluation of the currency (N481/$).
The expert projected that the MPC
would likely review the interest rate upwards in response to the rising
inflation rate and adjust other parameters.
Considering the dire state of
the economy, he called on the administration to communicate effectively with
the citizens on its economic plans and strategies.
He said it was time to discard
every form of propaganda and engage citizens transparently with a sense of
responsibility and accountability.
1. Infrastructure Deficit as a Constraint to Economic
2. Q4 2020 Unemployment Data: Pulling Away from Quicksand
3. NBS Publishes COVID-19 Impact Monitoring Survey Report
for January 2021
4. Another Trade Deficit in Q4 2020
5. Nigerian Consumers: Light at the End of the Tunnel?
6. A Modest Increase in FGN Domestic Debt in Q4 2020
7. Inflation and Interest Rates
8. Headline Inflation Jumps to a 4-Year High, Could Rise
9. The Nigerian Double Whammy of Inflation and Unemployment:
More of Structures than Event
10. InfraCorp: CBN Extends Deadline With Respect to Call for
Expression of Interest
11. Headline Inflation Increases by 17.33% YoY In February
2021, 0.86% Higher Than January 2021 Rate
12. COVID-19 Further Pushes Nigeria's Unemployment Rate
13. Nigeria's Unemployment Rate Increases to 33.3% in Q4 2020
from 27.1% in Q2 2020 - NBS
14. Nigeria's Total Public Debt Stood at N32.92trn as of
December 31, 2020 - DMO