The Centre for Promotion of Private Enterprises (CPPE) has hinted the government on some 11 ways to boost the economy as a response to dwindling gross domestics product (GDP) growth of the country.
This followed the latest gross domestic report for the third quarter of 2022 by the National Bureau of Statistics (NBS) which indicated that Nigerian quarterly real GDP growth dipped to 2.25% in the third quarter of 2022, from 3.54% in the second quarter.
In a note by its Chief Executive Office (CEO), Muda Yusuf, CPPE recommended that to fix the economy, it is important to address sectors that are in recession, sectors that slowed and those that have contracted, there is a need to put in place reforms and intervention measures.
According to him, some of the measures recommended by the centre include fixing the macroeconomic headwinds of high inflation and currency volatility; addressing the structural impediments to production and other economic activities; and reforming the foreign exchange market to inspire investors’ confidence.
Others, according to him, include addressing the challenges of insecurity; tackling the challenges of logistics; taking urgent steps to tame inflation and boost purchasing power of the citizens; accelerating the implementation of the Petroleum Industry Act (PIA); and reform the monetary policies to facilitate financial deepening in the economy.
He further stated that there is need to creative support for small businesses to promote economic inclusion; accelerate efforts to ensure domestic refining of petroleum products; and finally, embark on fiscal reforms that prioritize infrastructural development and transparency in the budgetary process.
Details of the GDP Report
The Nigerian quarterly real GDP growth dipped to 2.25% in the third quarter of 2022, from 3.54% in the second quarter.
This growth decline reflects the diverse headwinds that have been bedeviling the Nigerian economy, according to the centre.
It highlighted the headwinds include the macroeconomic instability, heightening inflationary pressures, currency depreciation, foreign exchange illiquidity, surging energy cost, weakening purchasing power, legacy structural constraints, lingering insecurity, and crippling trade facilitation issues.
The GDP report indicated sectors that expanded, those that slowed, others that contracted and sectors that plunged into recession.
Sectors that expanded in the third quarter of 2022 are agricultural sector (1.34%), Chemical and pharmaceutical (11.09%), iron and steel (2.99%), electrical and electronics (2.56%), motor assembly (2.69%), construction (5.52%), trade (5.08%), ICT (10.53%), metal ores (36.24%), mon metallic products (4%), quarry/other minerals (39.6%), insurance (19.9%), real estate (4.56%); and motion pictures & music (22.4%).
It is noteworthy that motion pictures & music, insurance, chemical & pharmaceutical and ICT outperformed other sectors in growth outcomes, compared to second quarter figures.