Ifeanyi Onuba, Abuja
The Nigerian Economy Summit Group on Wednesday said that the country’s growth model as currently being implemented was not inclusive and should be reviewed.
The group said this in its 2018 macroeconomic outlook report, which was made public during a presentation in Abuja.
The report was presented by the Senior Fellow, Public Policy and Institutional Development, NESG, Dr. Tayo Aduluju.
The group said in the report that while the economy had started returning to positive growth following five quarters of negative growth, the rate of growth had not been inclusive enough.
It said there was a need for the government to intensify the implementation of the Economic Recovery and Growth Plan as the path to full economic recovery had more hurdles ahead.
The report stated, “The path to full recovery presents more hurdles ahead and could be affected by Nigeria’s faulty growth model. In 2018 and beyond, the recent stability in the macroeconomic environment, if sustained, will keep growth afloat in 2018 and beyond.
“The concern for the economy should go beyond the narrative of mere growth. The emphasis should be in ensuring that more resources are efficiently utilised, the benefits of growth are equitably distributed and resilience is built against downside risks.
“Nigeria’s growth model needs a rethink and placing priority on inclusiveness should be a pre-eminent consideration.”
In terms of revenue, the NESG warned that any decline in oil revenue would make the Central Bank of Nigeria to reduce the supply of foreign exchange in order to preserve the nation’s sovereign credit worthiness.
The implication of this, according to the group, is that the real sector will be starved of foreign exchange.
It added, “Lower revenue would suggest that the increasing debt profile would be running at an unsustainable pace and prove to be destabilising.
“Eventually, the return of policy uncertainty cannot be ruled out. However, efficient utilisation of resources in the production process could forestall a lot of downside risks as well as make growth resilient along its journey to a potential level.”
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