‘Nigeria risks remaining underdeveloped without industrial plan’

Abuja-Based group of experts, known as Agora Policy, has said Nigeria needs to “desperately” improve its external trade and exports to achieve economic prosperity.

In a report, yesterday, titled, ‘Clear direction, urgent reforms sorely needed on trade policy’, the think tank cited several reforms, especially in the foreign exchange (FX) market, that were introduced to correct illiquidity in the currency markets

The group said the reforms had led to depleted external reserves, overdue FX obligations and large fiscal deficits, adding that potential investors were still reluctant to invest despite improving sentiment.

He said with these various policies introduced by the current administration, priorities should be targeted at exporting more to attract more foreign investments.

“Without meaningful external reserves cover and lack of access to debt markets due to high interest rates and weak creditworthiness, Nigeria is left with only two other options: exporting more and attracting more foreign investment,” the group’s policy report read.

“While these are not options that can provide immediate relief, they provide a more sustainable foundation for the future.

“This should be the priority for the government: to make the strongest case for why Nigeria is a better investment destination than elsewhere, and to make choices that will enable Nigeria to participate optimally in global oil and non-oil trade.”

Agora Policy warned that Nigeria was at the risk of staying underdeveloped if there were no existing export-focused industrial plan. The group advised that Nigeria must decide on “what it wants to sell to the rest of the world and the sectors to prioritise for investment”.

“Nigeria desperately needs economic prosperity that will lift poor people out of poverty by increasing earnings and employment for households,” Agora Policy added.