Tag: Nigeria Economic Summit Group

The Nigeria Economic Summit Group (NESG) has urged the Federal Government to unlock the nation’s estimated $4 trillion in bankable assets to attract foreign direct investment (FDI) and drive economic growth.

Its Chief Executive Officer, Dr. Tayo Aduloju, gave the advice in Abuja during the launch of the Group’s 2025 Macroeconomic Outlook Report. He stated that Nigeria holds significant investment potential, but legal, regulatory, and policy constraints continue to obstruct economic opportunities.

“Now, in terms of FDI, Nigeria sits on $4 trillion worth of assets that are bankable. However, many of them are gridlocked by legal, regulatory, and policy bottleneck. If the government wants to unlock investment, it needs to clear and de-risk national assets so they are attractive to investors,” he said.

Aduloju stressed the importance of economic expansion, saying, “Nigeria’s strategic sovereignty and autonomy depend on returning to 5.5 per cent or six per cent GDP growth rates. All hands need to be on deck because economic health will not come from external sources. The global economy is going through fragmentation and recalibration.”

He added that productivity, efficiency, and job creation must be prioritised.

 “We think the arc of the possible this year includes achieving a 5.5 per cent growth rate. Next year, we believe six per cent is achievable,” he said.

The NESG CEO also pointed out that every state in Nigeria has the potential to export at least one product worth a billion dollars annually. “The question is how to accelerate economic value addition and industrialization to make this happen across the country.”

He noted an expansion in non-oil exports but lamented that manufacturing’s contribution to exports remains low, reflecting insufficient value addition. “That needs to change, and it can change.”

To bridge the investment gap, Aduloju suggested onboarding the $5 billion investment pipeline identified by the Minister of Trade and leveraging the additional $20 billion discussed by the Minister of Foreign Affairs.

Read Also: NESG seeks policies to halt MSMEs collapse

“These are real opportunities. The government has announced them, and they need to be acted upon. If the economic team sits together and strategizes on how to bring in this money within 24 months, it would make a difference.”

He further explained that increased investment inflows would strengthen the Central Bank of Nigeria’s (CBN) position. “If your top revenue source is oil and production struggles, the economy will feel the impact. This is why we are concerned about political instability in Rivers State.”

Aduloju insisted on the need for Nigeria to sustain a crude oil production level of 2.2 million barrels per day (mbpd). “Regardless of crude oil prices, the budget’s viability depends on achieving 2.2 mbpd. The government has already demonstrated its capability by increasing production from 1.1 mbpd to 2.8 mbpd.”

He called for political stability in oil-producing regions and continued funding of security improvement plans. “The security plans are robust, but they must be executed. Talk is cheap; action speaks louder than words.”

Regarding inflation, Aduloju linked energy security to price stability. He described Premium Motor Spirit (PMS) as a major inflation driver and said price regulation in the downstream petroleum sector remains a challenge. “We moved from selling crude oil in naira to the Dangote refinery, and market signals indicate regulatory governance issues in the refined petroleum segment. Price competition should lead the way.”

He warned against returning to a fuel subsidy regime and stressed the importance of maintaining oil production levels. “Existing oil forward contracts must be fulfilled before surplus production can be used for domestic refining and other purposes. If production drops, meeting commitments becomes difficult. Gas supply is also at risk due to pipeline attacks, which impact fertilizer production and, ultimately, food prices.”

Aduloju also addressed Nigeria’s complex tax system, advocating for reforms to improve ease of doing business. “If the number of taxes is reduced from 72 to nine, business operations will improve. The type and rates of taxes must also be examined. The ongoing debate between the federal government and state governors on tax revenues will continue.”

He revealed that as the Senate is still reviewing its portion of the tax reform bill, the NESG is tracking developments. “The goal is for Nigeria to win, not a particular committee or government entity. A more transparent VAT system would attract investment. Even if a VAT rate hike is postponed for three years, efficiency and ease of compliance would still be a win.”

On revenue generation, he stated that tax reforms must balance blocking leakages, reducing tax burdens, and ensuring government revenue. “Without rate adjustments, government revenue could decline, creating fiscal deficits. However, investment-led and non-oil export-driven revenue generation could help offset shortfalls,” he said.

Addressing Nigeria’s 2025 budget, Aduloju said: “Executing this budget requires immense effort. If revenue falls short, borrowing becomes necessary. The government must adopt cost-effective credit strategies, especially since global funding sources are shrinking.”

He pointed to geopolitical shifts, including the European Union’s focus on defense spending and reduced aid, as factors limiting foreign financial assistance. “The imperative to pursue higher economic growth has never been greater.”

The NESG CEO concluded by urging the government to implement well-structured policies that will attract investment, boost productivity, and stabilize the economy. “This is the time for decisive action. Nigeria must capitalize on its potential and create an environment where investment thrives,” he said.

• NBS to launch rebased GDP, CPI reports month end

The Chief Executive Officer of the Nigeria Economic Summit Group (NESG), Dr. Tayo Aduloju, has noted the significant benefits of rebasing the country’s Gross Domestic Product (GDP) and Consumer Price Index (CPI), by outlining how such exercises enhance economic transparency, policy development, and investment attractiveness.

Speaking at a workshop organized in collaboration with the National Bureau of Statistics (NBS) in Lagos, Dr. Aduloju explained that a rebased economy provides a detailed map of Nigeria’s economic landscape. This, he said, enables governments to identify high-growth sectors for scaling and low-growth areas that require targeted interventions for balanced development.

“Economic rebasing is essentially a recalibration—an exercise with profound significance akin to cleaning the lenses through which we view our economy. It offers a clearer, more accurate picture of the economy’s structure, size, and potential,” Dr. Aduloju said.

The rebasing of Nigeria’s GDP in 2014 had a dramatic impact, increasing the GDP by nearly 90 per cent, propelling the country’s economy to $510 billion and making Nigeria the largest economy in Africa, surpassing South Africa.

This was a reflection of the reality of emerging sectors like telecommunications, real estate, and creative industries, which had previously been undervalued by the old metrics.

Meanwhile, the National Bureau of Statistics (NBS) said it will at the end of this month release the rebased GDP as well as the two reports on CPI of the country.

The first CPI for data for the Month of December based on the old index will come up on January 15 while the one based on the new price index will be released at the end of January.

Dr. Aduloju noted the benefits of rebasing, particularly in improving Nigeria’s fiscal credibility. The 2014 rebasing led to a reduction in the country’s debt-to-GDP ratio from 19 per cent to 11 per cent, enhancing its creditworthiness and making Nigeria a more attractive destination for foreign direct investment.

He explained that, “Investors are drawn to transparency and growth potential and rebasing sends a clear message that we understand our economy and are open for business.”

The NESG CEO also highlighted the role of rebasing in sharpening policymaking. By offering an updated and accurate map of the economy, it enables governments to make better-informed decisions, target investments, and implement policies that promote sustainable and inclusive growth.

Dr. Aduloju pointed to Ghana’s experience after its 2010 GDP rebasing, which led to a 60per cent increase in GDP and allowed for better planning of infrastructure and social investments.

Read Also: Govt needs to review 115 opaque laws to stimulate economic growth, says NESG

However, Dr. Aduloju acknowledged that past rebasing efforts by the NBS have sometimes been met with skepticism, which has affected the perceived reliability of the data. The workshop, he explained, presents a unique opportunity for private sector stakeholders to engage deeply with the data, address concerns, and explore how insights from the rebasing process can guide business strategies and policies.

In his address, the Statistician-General of the Federation and CEO of NBS, Prince Adeyemi Adeniran, underscored the importance of the rebasing exercise, stressing that it is crucial for ensuring that the nation’s economic indicators reflect the current structure of the economy. “As economies evolve, new industries emerge, and consumption patterns shift, it becomes imperative to update our statistical measures,” Prince Adeniran said.

He stressed that rebasing provides a more precise and relevant picture of Nigeria’s economic landscape, which is essential for effective governance and policymaking.

Prince Adeniran also highlighted the NBS’s commitment to producing timely, accurate, and reliable data, which is critical for the formulation and implementation of policies that drive national development. “The Bureau’s approach is open, collaborative, and rigorous, ensuring that no stone is left unturned in accurately measuring and reporting on the economy’s size and price changes,” he added.

Speaking during a one-day sensitization workshop on GDP and CPI rebasing organised by the NESG in collaboration with NBS, at the Summit House, Ikoyi, Lagos, the Statistician-General of the Federation, Prince Adeyemi Adeniran said: “The Rebasing is a vital exercise that ensures our economic indicators are current and accurate reflections of the economic realities on the ground. As economies evolve, new industries emerge, and consumption patterns shift, it becomes imperative to update our statistical measures to capture these changes.

“Rebasing our GDP and CPI allows us to align with these transformations, providing a more precise and relevant picture of Nigeria’s economic landscape. This process is foundational to informed policymaking, strategic planning, and effective governance; hence, it is one exercise that the NBS is conducting with significant importance and professionalism.

 “If Nigeria is to make the desired progress and development, it is imperative that NBS, as the official producer of data, plays its role adequately in providing timely, accurate, and reliable statistics to inform all users, both in the public and private sector, to enable them design, plan and implement policies and programs that will lead to the attainment of national objectives. Our mindset in undertaking both critical assignments is to ensure that our processes are open, collaborative, and rigorous, making sure that, as much as possible, we leave no stone unturned in our bid to measure and report accurately, the size of the economy and the level of price changes.

 “Today’s workshop exemplifies our commitment to collaboration and stakeholder engagement. We recognize that the credibility and utility of our statistics are enhanced through the active participation of diverse stakeholders, including private sector operators, academia, economic experts and analysts, media executives, civil society organizations, and government. As we proceed with the finalization of the rebasing of our GDP and CPI, I want to highlight this key point. The rebasing exercise is designed to ensure that our economic indicators accurately reflect the current structure of our economy, incorporating new and emerging sectors, updating our consumption baskets, and refining our data collection methods. This is our responsibility as the official producer of data in Nigeria.”

Aduloju said: “NESG/NBS sensitisation workshop on GDP and CPI rebasing is a critical step in aligning Nigeria’s economic metrics with our ever-evolving realities. This workshop is not just about numbers; it is about understanding our economy’s true potential and laying the foundation for sustainable growth. Economic (GDP) rebasing, in essence, is a recalibration – an exercise with profound significance and akin to cleaning the lenses through which we view our economy, allowing us to see a clearer, more accurate picture of its structure, size, and potential.

 “As economies evolve, new industries emerge, technology transforms markets, and the contributions of different sectors shift. Without updated economic measurements, we risk underestimating our true economic capacity. The NESG, through one of its four strategic roles in the country, has continually watchdogged the economy and leveraged empirical analysis, evidence, and rigorous research to drive evidence-based policy advocacy. Today’s workshop, in collaboration with the National Bureau of Statistics (NBS), is yet another step in that direction to enhance the understanding and utility of key economic data.”