How to achieve sustainable growth in Nigeria, others

FOR Nigeria and other African economies to achieve sustainable growth this year, with the phenomenal plummeting fortunes of commodity prices, they need to effect prompt fiscal adjustments to reduce pangs of downside risks. This conclusion was reached by the African Consultative Group at the just concluded World Bank/ International Monetary Fund (IMF) Spring Meetings in Washington DC, U.S.A.

Meanwhile, Nigeria’s Coordinating Minister of Economy, Dr Okonjo-Iweala,on the sidelines of the meetings, affirmed robust economic profile of the nation’s economy, even as she denied knowledge of the N2 trillion campaign fund saga.

The regional group, at the meeting headed by the Chairman of the African Caucus, Armando Manuel and co-chaired by the Managing Director of IMF, Ms Christine Lagarde, however noted that the economic outlook for the continent remains promising, with economic activity generally projected to increase at a rate of four per cent this year, “in an environment of continued moderate inflation.”

Specifically, the group prescribed that Nigeria and other oil importing countries should “reduce costly energy subsidies and create the fiscal space to support their development objectives.” Besides, the group pointed out that “access to funding could become more challenging as the United States unwinds its conventional monetary policy.

“Going forward, as we seek to achieve the sustainable development goals, we agreed that it will be important for governments to maintain macroeconomic stability; strengthen institutions and the business environment; address critical infrastructural gaps; expand access to financial services in our economies; and seek to ensure that growth is both broad-based and inclusive.”

Lagarde, in her closing remark at the meeting, said: “The IMF will remain closely engaged with our African members, supporting them with financial resources and technical advice as needed.

“In particular, we will continue devoting resources to assist North African countries in transition and fragile states to ensure economic stability and resilience. At the same time, the Fund will continue to strengthen the analytical underpinnings of its policy advice and instruments, and seek to adapt its policies to the evolving needs of the membership.” Okonjo-Iweala disclosed that the Federal Government has established infrastructural framework to build Nigeria’s economy on a sustainable basis.

According to her, the administration’s economic diversification programme is on course and the real sector in particular is being strategically focused on to promote the well-being of Nigerians and the economy.

She pointed out that access to fund has been improved upon for real sector operators and the outlook looks bright with the establishment of the Development Bank and the strengthening of the existing financial institutions. The Deputy Governor of Central Bank of Nigeria, Dr Sarah Alade affirmed that the nation’s financial institutions have become robust and resilient enough to contribute their quota to the development and growth of the economy.