The Centre for the Promotion of Private Enterprise (CPPE), a private sector advocacy group in Nigeria, has charged the Federal Government on the need for strategic and sequencing approach in the implementation of the current reforms targeted at correcting the abuses in the nation’s fiscal and monetary policies to improve the performance of the economy.
The Centre’s Director/Chief Executive Officer, Dr. Muda Yusuf, who gave the advice while commenting on the Q2, 2023 Gross Domestic Product (GDP) report by the National Bureau of Statistics (NBS), noted that while the GDP marginally improved in real terms to 2.51% when compared to the preceding quarter’s 2.31%, amid shocks from current economic reforms
The seasoned economist pointed out that the adverse impacts of the reforms were disproportionately higher than expected, adding, however, a rebound of the economy is expected in the medium to long term as current distortions in the economy are corrected.
According to him, the Q2 GDP growth fell short of the sub-Sahara projected average of 3.1% for 2023; but better than projections for the Euro Zone of 1% and the United States of 1.8%.
Yusuf, who also appraised the sectors that grew, slowed and contracted and receded during the quarter under review, explained that the receding sectors had been stumbling because of macroeconomic , structural or policy issues.
He further noted: “Oil refining contracted by 35.6%; Livestock, 2.3%; Crude Petroleum and Gas, 13.4%; Textile, 4.4%. Growth in these sectors continued to be subdued by heightened inflationary pressures, exchange rate volatility, spiking energy cost, insecurity and the political economy of the oil and gas sector.”
In his concluding remarks, the CPPE boss pointed out that the economy was still going through corrective reforms to remove some fundamental distortions and restore the economy back to the path of recovery and growth, adding that implementing the reforms is an arduous task just as the trade-offs are profound and the social impact has been devastating.
On how to improve the performance of the economy, Yusuf canvassed: “Given the inevitability of the reforms, the implementation calls for a delicate balancing act and strategic sequencing to ensure an inclusive economic transition.
“Dealing with the issues of insecurity, spending priorities, corruption, productivity and competitiveness, regulatory environment and macroeconomic stability are paramount to rebuilding the momentum of economic growth and development”, Yusuf stressed.
