Posted Wed, Jan 26, 2022 2:25 AM

NESG 2022 Macroeconomic Outlook: Reforms Towards Significant Improvement in National Economic Outcomes

The Nigerian Economic Summit Group (NESG) on Tuesday, January 25, 2022, launched the 2022 macroeconomic outlook report with the theme “The Last Mile: Reforms towards significant improvement in national economic outcomes” at the Transcorp Hilton Hotel, Abuja.

While delivering the opening remarks, the chairman of the NESG, Mr Asue Ighodalo, said that the event seeks to create a platform for a robust debate and discussion on issues bordering on the economy, growth, job creation and poverty reduction. He stated that the NESG macroeconomic report aims to critically analyse the Nigerian economy and help create an enabling environment that catalyses economic growth. 

“The government still has the time, if it has the will, to create a solid foundation and catalyse growth base for this country; and must continue to work hard to deal decisively with the challenges of poverty, unemployment, insecurity, social cohesion and macroeconomic instability,” Mr Ighodalo said, adding that to secure the future of Nigeria, there can be no ignoring the fierce urgency of now.

Mr Ighodalo reiterated that “the World Bank estimates that an additional one million people were pushed into poverty in Nigeria between June and November 2021, resulting in a total of about eight million people being relinquished to poverty in 2021 and bringing our nation’s poverty headcount to about 91 million.” He noted that with persistent uncertainty, election distraction would likely amplify the adverse effects if the government doesn’t move to stem the tide with critical reforms that will leave a positive lasting legacy to create a foundation and catalytic growth rate that deals with unemployment, social cohesion and macroeconomic stability.

In his remarks, the CEO of the NESG, Mr Laoye Jaiyeola, said that the NESG 2022 Macroeconomic outlook was particularly important, and it was pertinent for every aspiring office holder to pay attention to the economic outlook and stay aware of the challenges we face as a nation. He stated the importance of taking bold actions to ensure sectoral reforms and ensuring that Nigeria consumes what it produces to make the country’s business environment favourable.

“As you remove the subsidy, also find a way to liberalise and make the oil sector competitive. Everyone should realise that 40 percent of our population consumes fuel products. This is a subsidy for the rich rather than the poor. We should, therefore, look for ways to invest in the oil sector. Subsidy is not what I think we can sustain in a long while,” he stated.

While presenting the #NESG 2022 Macroeconomic Outlook, Head of research NESG, Dr Olusegun Omisakin, said that a lot of sectors performed better, and the Agric sector contributed significantly to these improvements. He noted that the capacity of the FG to earn revenue was not properly appropriated because the country is currently producing below capacity and can’t ensure that domestic production serves local capacity. 

Mr Jaiyeola commended the federal government for passing the Petroleum Industry Act but stressed the need for collaboration with critical stakeholders in the oil and gas sector to ensure implementation. He noted that the proposed fuel subsidy removal as stipulated in the PIA would have significant impacts on the economic outlook for 2022.

The senate president, Dr Ahmed Lawan, represented by Senator Olamilekan Adeola, said that the government has put in a lot to increase government revenue and that the government continually strives to create an enabling business environment that will ensure economic growth and development.