The CEO of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf has predicted that if macroeconomic issues are addressed correctly, it will have a major medium and long-term influence on the stability of the macroeconomic climate.
According to Nairametrics, he noted that: “There will be many chances for SMEs, medium-sized businesses, large businesses, domestic enterprises, and foreign investors, whether they are a portfolio of FDIs if we can resolve all the macroeconomic concerns.
“Thus, if we can remove those obstacles, the economy will likewise see significant changes.”
Speaking about security, he asserted that a relationship exists between investment risk and environmental risk. He claimed that significant economic sectors had been impacted by insecurity.
“About 24% of Nigeria’s GDP is generated by agriculture. We are aware of how insecurity affects agriculture; it has all but destroyed the industry. The industry might perform considerably better. We are aware of the effects it would have on food inflation as well as the impact that inflation would have on poverty.
“The perception of the country as a location for investment is implied by insecurity. Although perception counts a lot, it doesn’t always correspond with reality because anyone looking at Nigeria from a distance would be sufficiently alarmed by the stories coming from this country to scare away investment.”
He added that the nation’s defense spending is dwindling as a result of the unrest. The benefits of a strong defense expenditure, he said, would be at the expense of other economically successful areas.
“In general, I believe that insecurity is a serious issue for the economy that is affecting its ability to grow and is making it difficult for us to attract investment. It’s not just insecurity in terms of killing and all of that; it’s also insecurity related to oil theft and the insecurity in the oil-producing area, which has done a lot of harm to the economy.
“Oil theft costs us roughly N400 billion each month. And this has been happening for about ten years. The administration didn’t realize how serious the situation was until lately when it made the decision to act.
“We hope that is sustained, but we know how many value investors we have lost in that sector; practically all the oil majors have left the sector, and these are the companies that have the capacity and the muscle to make a difference in terms of investments in the sector.
The macro challenges, he claimed, are the most pressing, but the country also requires stronger governance in terms of trade environment and policies.
