The Organised Private Sector has expressed support for the International Monetary Fund’s recent report, which excluded Nigeria from a list of countries making notable progress in macroeconomic reforms.
The IMF’s Deputy Director, Catherine Patillo, presented a report at the Lagos Business School recently noting that while the average growth rate for the region was projected at 3.6% for 2024, Nigeria’s growth of 3.19% fell short of this benchmark.
The IMF report also praised Ghana and Zambia for their successful fiscal consolidations, contrasting them with Nigeria’s challenges in achieving tangible results from its reforms.
In response on Monday, the Manufacturers Association of Nigeria and the Lagos Chamber of Commerce and Industry called the IMF’s assessment a wake-up call, urging the Nigerian government to take urgent action to address the nation’s economic struggles.
The Director-General of MAN, Segun Ajayi-Kadir agreed with the IMF’s position, noting that it accurately reflected the challenges businesses in Nigeria are experiencing.
“It is evident that the expected relief from the negative impacts of the reform is yet to fully kick in. We are only seeing an escalation of those factors: the floating of the exchange rate has not brought the expected stability, petroleum product costs are rising, and inflation remains stubborn despite increasing interest rates,” Ajayi-Kadir said.
He emphasised that the manufacturing sector was still heavily constrained, adding “The productive sector must be insulated from the adverse impacts of these reforms. We expect deliberate efforts by the government to accelerate support for manufacturing and mitigate these impacts, at least by the last quarter of this year or the first quarter of 2025.”
Ajayi-Kadir urged the prioritization of fiscal and energy reforms, the promotion of alternative energy sources, and addressing insecurity as essential measures to unlock Nigeria’s economic potential.
He urged Nigerians to also focus on state-level contributions, stating, “There are at least 37 budgets in this country. State governments must deliberately promote manufacturing and resource beneficiation to build infrastructure and foster growth.”
The MAN DG concluded, “The government must take full control of the situation and work collaboratively with sub-nationals to deliver results. Nigerians deserve to see the dividends of these sacrifices sooner rather than later.
In his remarks, LCCI President, Gabriel Idahosa pointed out that the IMF’s assessment was not new to local stakeholders, but stressed the importance of staying committed to the path ahead.
“The IMF isn’t saying anything new; they’re just summarising what we have always said. For us as a country, the focus should be on maintaining the slow but modest progress being made. Reforms like fuel subsidy removal and currency unification are critical, and their benefits will crystallise by the end of next year,” Idahosa said.
He noted the ongoing progress in the oil and gas sector, particularly efforts to curb oil theft and raise production capacity to 2 million barrels per day. Idahosa also highlighted developments in gas infrastructure, the adoption of electric vehicles, and the growing use of compressed natural gas as positive indicators of progress.
“The faster we transition to gas-fired and electric vehicles, the quicker inflationary pressures will ease,” Idahosa explained. “By 2025, the benefits of localised crude processing and reduced freight costs will begin to materialise, lowering operational costs for businesses.”
Meanwhile, the National President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, said most Micro, Small, and Medium Enterprises, stated that the recent economic reforms have not brought much yield to the economy.
He said, “We totally agree with the IMF’s report at this time, recent economic reforms haven’t yielded many positive outcomes yet.
“Inflation continues to soar, naira is still on a free fall, businesses are either ailing or shutting down, the poverty level is deepening and ease of doing business is dropping on the ladder.
“These administration economic reforms may need to be overhauled, Nigerians are suffering. We expect much more positive outcomes from this government.”
Also commenting, the National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George expressed full agreement with the IMF representative, stating that the current government’s economic agenda or strategy, as the case may be, is not delivering the desired results.
He said, “This is because economics is a science, and whether an economy is improving or otherwise is measured by certain indices. Those indices include the gross domestic product, GDP of a country, gross national product, GMP, inflation rate, exchange rates, infrastructure and development, employment rates, and quality of life among others. Also, you will agree with me that when you look at all these indices, they are still in the negative.
“Of particular interest is the exchange rate, which has become something that it looks like we cannot arrest. The pound is exchanging for over 2,200, as are today, over 2,200, and inflation rates are estimated at 34 per cent. When you look around you, the quality of life of people has only declined. And there is no significant or noticeable improvement in infrastructure development. When you look at these few indices, you cannot but agree with the rep who said that it looks like those economic strategies.
“Given these indicators, it is clear that the current economic strategies are not achieving their intended outcomes. This sentiment is not only my personal opinion but also reflects the perspective of the association I represent and fellow entrepreneurs.”
