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Against the backdrop of government seeking to reposition the economy through some policy reforms, the need to boost investors confidence in achieving stability is garmane for desired economic growth, Mr. Muda Yusuf has said.
Muda Yusuf who is the immediate past Director General of the Lagos Chamber of Commerce and Industry (LCCI) and now founder/CEO Center for the Promotion of Private Enterprise (CPPE) made this remark on Wednesday at the maiden edition of the City Businessnews Summit/Award 2023.
Speaking as Guest Speaker on the theme: Repositioning Nigerian Economy: 2023 & Beyond, Mr. Yusuf said, for the government to achieve it’s desired objectives, “we need confidence to boost investment both from domestic investors and foreign investors.
Painting the current position of the government, Yusuf noted that, currently the President Bola Ahmed Tinubu administration, is grappling with a legacy of weak macroeconomic fundamentals – currency volatility, high fiscal deficit, low revenue, surging debt levels, declining reserves and weak investors’ confidence.
He said, the evidence of the deteriorating macroeconomic conditions did not fully manifest before the exit of the previous administration. But that the reality was that the economy was already on the brink.
Yusuf who said all is not bleak for the economy, explained that the current reforms were designed to correct the legacy of economic distortions and deteriorating macroeconomic fundamentals.
According to him, “It is refreshing to see President Tinubu put in place a performance management framework as part of the governance process. This was a laudable development as it would create a culture of result orientation in public service. It would move the disposition of the public sector away from focusing disproportionately on processes to outcomes. If the performance management framework is properly implemented, the economy and the citizens would surely enjoy better value from governance.
Yusuf who no doubt was mindful of the government policy on the removal of subsidy and unification of the exchange rate, noted that the dominant worry today among the economic players and the citizens is the health of the Nigerian economy.
“The anxiety and apprehension are palpable and profound. This is understandable given the economic shocks of the recent months. The experience of economic players and the citizens over the past couple of months has been very unsettling. The shocks are pervasive among the broad spectrum of the business community – micro, small, medium and large enterprises. The informal sector is not spared.For the citizens, the impact has been very profound amid soaring prices of goods and services, depreciating and volatile exchange rate, illiquidity in the foreign exchange market, high interest rate and high trade costs. There are also worries about weak and declining purchasing power, escalating production costs, rising energy cost, slump in industrial capacity utilization and erosion of profit margins.
On the opportunities inherent in the current economic crisis, Mr. Yusuf reel-out, incredible opportunities for import substitution across all sectors; Provision of domestic alternatives to medical tourism; Alternatives to education tourism; Alternatives to vacation abroad; Alternatives to industrial raw materials; Local fabrications of spare parts and other mechanical devices; High food prices are a great opportunity for investment in agriculture; Greater opportunities for export business. Opportunities for diaspora Nigerians to invest at home.Opportunities for export of services.
“Japa not entirely a bad idea. India had $100 billion remittances in 2022, Philippines $38 billion; Pakistan $30 billion, Mexico N61 billion , Nigeria $22 billion in 2022.There should be deliberate policy to promote migration abroad. Even our artisans, care givers, truck drivers can benefit.Outsourcing opportunities for business abroad”, he added.
