Federal Government’s current fiscal and monetary reforms will only succeed in escalating misery and poverty in the country, unless the cost of governance is reduced to the barest minimum.
A Professor of Economics, and Data Analytics, Lagos Business School, Bongo Adi, who disclosed this in his keynote speech at the FATE Foundation’s 10th Business Outlook and Alumni General Meeting, decried the signaling from government actors that it does not infuse significant confidence in the economy.
He noted that the rise in public debt, worsened by exchange rate depreciation and new borrowings, highlights underlying fiscal vulnerabilities that need to be addressed.
Adi noted that there are huge opportunities within African nations for Nigerian entrepreneurs, adding that business owners should go to other neighbouring countries to collaborate with other entrepreneurs.
“There is hope for Small and Medium Enterprises (SMEs) because Naira is projected to gain moderate weight due to an increase in domestic petrol production, diaspora remittances, capital flow and the new CBN foreign exchange (FX) code.
“Economic growth in 2025 will be modest, with real Gross Domestic Products (GDP) increasing by 2.6 percent as developed economies slow.”
Inflation is expected to ease, allowing for further monetary easing. Prices for agricultural and energy commodities will fall, but those for industrial raw materials will rise,” he said.
The economist, who also encouraged SMEs to seek expansion of the manufacturing value chain to meet global standards and boost foreign exchange earnings, explained that global value chain orientation among Nigerian entrepreneurs is crucial to growing the country’s economy, and making it globally relevant.
He said: “Having global value chain is the way innovation happens, and that it generates massive revenues for a country. Nigerians consume products from other countries such as Korea, Japan and China, among others, such as cell-phones, electronics, air-conditioners, and others. Nothing stops us from having our value chains in those products.
“Looking at the amount we spend in importing these products, we should strive to produce some parts of these products we consume. For the country to grow its GDP, it must be driven by the amount of products and/or services it contributes into the products its citizens consume per time. Export-oriented economy is the only way Nigeria can boost its economic growth.”
The President, FATE Alumni Executive Committee, said the aim of the event is for the alumni members to discover opportunities to play big in the global value chain.
“One thing FATE Foundation does is to help members not only to scale up their businesses but to hold their hands and guide them through the trajectories of growing ventures,” she said.
Bakare said the foundation is poised to organise workshops that will help alumni optmise cross-border collaborations and tap into the global value chain space available to them.
FATE Foundation is Nigeria’s foremost enterprise support organisation enabling aspiring and emerging Nigerian Entrepreneurs to Start, Grow and Scale their businesses.
During the panel session, entrepreneurs had the opportunity of reviewing their experiences and the impact of the outlook on their businesses. The CEO Yembar Ventures, Mrs. Adebukola Baruwa disclosed that some of the insights that helped her stay resilient was increased market size and seeing challenges as opportunities.
On his part, Dr Samson Oyenekan of Ilera Fagba Foundation, encouraged entrepreneurs to network and get like-minded individuals who share the same interest like them.
