IMF Ties Nigeria’s 3.1% Economic Growth to Stronger Reforms

The International Monetary Fund (IMF) has stated that Nigeria’s projected 3.1% economic growth for 2024 hinges on the implementation of more robust reforms.

Speaking at the Lagos Chamber of Commerce and Industry (LCCI) International Business Conference and Expo 2024, themed “Invest Nigeria,” Dr. Christian Ebeke, IMF Resident Representative, emphasized that to achieve this growth, Nigeria must enhance its governance and business regulations. He pointed out that while the country had recorded progress in its credit market, as well as financial and external sectors, more needs to be done to transform this growth into something sustainable.

“Insecurity, tight financial conditions, multiple taxes, insufficient power supply, and corruption are the main challenges businesses face,” Ebeke noted. He added that the IMF is encouraged by the ongoing reforms by the Federal Government to tackle these issues.

Ebeke further highlighted that by reducing governance and regulatory bottlenecks by 25%, Nigeria could potentially boost its Gross Domestic Product (GDP) by 6.4% over the next three years, drawing a parallel to similar reforms in India.

In his address, the Minister of Marine and Blue Economy, Adegboyega Oyetola, stressed Nigeria’s strategic importance and vast resources, particularly in the marine and blue economy sectors. He assured investors that despite the challenges, the government is committed to creating a favorable business environment. He also mentioned various incentives such as tax exemptions for businesses operating in free trade zones and infrastructural support.

Similarly, Lagos State Governor, Babajide Sanwo-Olu, underscored Lagos’ position as Africa’s economic hub, highlighting the state’s conducive business environment, strategic location, vast market, and energetic talent pool. Sanwo-Olu reiterated his administration’s focus on infrastructure development, including upgrading transportation, logistics, telecommunications, healthcare, education, and the digital ecosystem to attract more investments and drive growth.