As the Federal Government pushes for its $1 trillion output target, an economist and financial analyst has charged the federal government to put mechanisms in place that would align realities with the expected economic growth.

Speaking on a theme, ‘Towards a $1 Trillion Economy, Roles of Insurance and Pension Sectors’, at the ninth edition of the Nigerian Association of Insurance and Pension Editors’ (NAIPE) Conference, the Managing Director/Chief Economist, Analysts Data Services and Resources Limited, Dr. Afolabi Olowookere, advised the Federal Government to tinker with the current policies and speed up infrastructure development to encourage more investments to achieve the target.

According to Olowookere, the country’s gross domestic product grew from 2.98 per cent in the first quarter of the year to 3.19 per cent in the second quarter, insisting that the prospect, in the short to medium term, remained weak. He said inflation and other socio-economic variables, such as interest rates, could constitute obstacles to achieving the projection.

“The inflation rate rose from 21.82 per cent in January 2023 to 34.19 per cent in June 2024 and declined slightly to 33 per cent in July 2024 and further to 32.15 per cent in August 2024. Inflation reached 32.15 per cent (YoY) in August 2024, driven mainly by food price inflation and loose financial conditions.

“With continued monetary tightening, the International Monetary Fund (IMF) projects inflation to gradually decline to 24 per cent (YoY) at the end of 2024 and further down to 14 per cent by 2027.

“Hence, the interest rate is expected to remain relatively high in response to inflation and economic instability,” he said. He emphasised that considering the current economic order, at best, the economy would grow to around $450 billion by 2030.

Reflecting on the current GDP position, the financial analyst identified leading contributors to Nigerian outputs including Agriculture, ICT, Trade and Manufacturing. He said: “It has remained the fastest growing sector in recent times. The performance of the Nigerian economy has been mixed in the last year.