The Minister of Industry, Trade and Investment (MITI), Mr. Okechukwu Enelamah, has reiterated government’s commitment to ending the current economic recession through strategic policies such as robust partnership between government and the private sector, support to Micro, Small and Medium Enterprises (MSMEs), as well as intervening in high potential sectors including manufacturing and agriculture.
Enelamah stated this at the 2016 Annual Investor Conference organised by FBN Capital Limited, the Investment Banking and Asset Management subsidiary of FBN Holdings Plc in Lagos.
In his presentation titled: “Matching Opportunities with Patient Capital,” the minister, emphasised the importance of government partnership with the private sector in order to move the nation’s economy forward.
He said despite the recession, Nigerians should see the economy from a positive perspective instead of being pessimistic. He noted that the oil price crash exposed the structural deficiency in Nigeria’s large and thriving economy.
“Countries in difficulty have used different strategies to strengthen and diversify their economies. That is why Nigeria needs to move away from over dependence on oil. Diversification and growth is the key to economic recovery and ensuring a more stable future. Nigeria should have a strong local base of investors because foreigners will always leave leading to dry up of capital,” he said.
Enelamah recommended applying practical solutions such as creating the right environment and polices to harness the productivity of Nigerians in order to overcome the current inflation in Nigeria, as the economy remains large and full of potentials. He added that it is very easy to have a disconnect between the government and the people when there is no trust in government policies.
The minister identified the five execution principles of the MITI which include creating a favourable economic framework, support to Micro, Small Scale and Medium Enterprise (MSME), sector prioritisation, partnership and joint ventures and immediate implementation of policies.
“In order to realise Nigeria’s diversification and growth plan, it is essential to concentrate on an area where Nigerians are advantaged and give them necessary support,” he said.
Meanwhile, Head, Equity Research, FBN Capital, Mr. Bunmi Asaolu, gave a joint presentation with Head of Macro-Economic Research FBN Capital, Gregory Kronsten titled: “The Economy and Markets.” Mr. Kronsten opened the presentation by linking the recession to the fall in supply of foreign exchange and the lack of a buffer of reserves. He noted that non-oil inflows are now higher than oil inflows and that they could and should grow substantially.
On his part, Asaolu said there was a strong double digit growth in revenue and Profit Before Tax (PBT), and triple digit growth for Profit After Tax (PAT), saying that close to half of the PBT derived were from foreign exchange related gains.