Comercio Partners Counsels FG on Measures to Fastrack Economic Growth

Nume Ekeghe

Comercio Partners Limited, has advised the Bola Tinubu administration on policy measures needed to fasttrack the nation’s economic growth including comprehensive policy reforms and improved governance.

Co-Managing Partner Comercio Partners and CEO of the Asset Management subsidiary of the firm, Tosin Osunkoya gave this advice in a review of the Gross Domestic Product (GDP) report for the first quarter of 2023.

According to the National Bureau of Statistics, NBS, GDP growth dropped to 2.3 % in Q1’23 from 3.1% in Q1’22, with the agric sector contracting for the first time in seven years by 0.90% during the quarter.

Noting that the decline in growth can be attributed to a combination of factors including naira scarcity during the period, volatility in global oil prices, inadequate infrastructure, and an uncertain business environment saddled with continuous and aggressive rate hikes from the nation’s apex bank, Osunkoya added that, “The fact that Nigeria’s agricultural sector contracted for the first time in over seven years is undeniably concerning. Agriculture has long been a vital sector in Nigeria, providing a living for millions of people and contributing considerably to the country’s economy. This contraction raises serious concerns about the underlying drivers including the impact of insecurity, flooding, insufficient and misallocated intervention funds, and infrastructural setbacks.”

Osunkoya averred that, “The latest GDP report emphasises the importance of comprehensive policy reforms and improved governance to address Nigeria’s economic challenges. It is crucial for the new government to create an environment conducive to business growth and investment. This involves implementing regulatory reforms, ensuring policy consistency, combating corruption, enhancing transparency, and strengthening institutions.”

Commenting on the 6% GDP growth target of the President, Osunkoya said: “I am confident that if resources are channelled properly, backed with unbiased economic policy reforms, the new government will be able to achieve and even surpass this growth target. To achieve this, the new administration should prioritize sectors such as the agricultural and services industries. 

“While these sectors face unique obstacles as they grow, one key setback that must be addressed is insecurity. The new government must use all available resources to keep Nigeria safe from terrorism, banditry, and kidnapping. This will help strengthen the confidence of both foreign and domestic investors. No economy, business, and society can grow or develop in an unstable, chaotic environment.”