Echoes Of NES#30: Current Pains Propelling Future Gains

The yearly Nigeria Economic Summit (NES) by the Nigeria Economic Summit Group (NESG) completed an unbroken 30 years of keeping faith with the country’s economic trajectories last week.

Like the previous episodes, which consolidated on the tangibles, the threeday pack full 30th edition was all for the economic prosperity—filling gaps and bringing the country to speed with the rest of the developed nations.

The theme was purposeful and instructive “Collaborative Action for Growth, Competitiveness, and Stability.” It was central to finding effective solutions to the country’s dimensional economic challenges.

For three days, senior government officials, captains of industries, and players in the private sector were immersed in intense conversations to unearth problems that strangulated the economy, proffering short and long-term answers for a healthier economy.

In his welcome address, NESG Chairman, Mr. Niyi Yusuf, reckoned that Nigeria had made some significant strides amidst poignant challenges. “While our nation has made significant strides, our challenges are clear.

“The twin problems of income inequality and multidimensional poverty continue to cast a long shadow over our progress. Nigeria’s struggle with an uneven distribution of resources, macroeconomic instability, and Institutional fragility prevents us from reaching our full potential.

The task before us is to forge decisive reforms that can break these cycles of stagnation and pave the way for equitable growth. “Since our recovery from the 2016 recession, the Nigerian economy has shown resilience but remains fragile.

In 2023, real GDP growth slowed to 2.74 per cent, down from 3.1 per cent in 2022, highlighting the difficulty of sustaining momentum amid persistent structural challenges.

“These Challenges—including security concerns, human capital deficiencies, and inadequate infrastructure—create a complex environment that stifles business and economic growth,” noted NESG chairman.

Economic reforms

Coincidentally, the 30th edition of NES took place at an unnerving time; a period Federal Government’s policy reform iss hitting its climax and putting excruciating pains on the masses.

The President Bola Ahmed Tinubu’s administration, on its first day in office, halted the age-long, pursedraining oil subsidy in addition to floating the naira exchange rate.

All past administrations before Tinubu planned to remove the subsidy and to discontinue propping up naira value through the shrewd CBN’s intervention window. No past administration had the guts to follow through on subsidy policy as the dogmatic former governor of Lagos State did.

The pain heralding the reform, the government says, is a necessary sacrifice for enduring growth and prosperity. The pain is agonising. From a cost price of less than N200 a litter of PMS before May 29, 2023, a litter of fuel today sells for between N1,030 and N1,300, depending on location.

From an exchange rate of less than N800 to $1 pre-Tinubu era, $1 exchanges to over N1,600 today. The exchange rate is uniform both at the official window and parallel market, with complete erasure of arbitrage.

The cost of items—all, including essential services—transportation has hit roof top. The government isn’t aloof to cries and wailing by Nigerians. In acknowledgement, it assures of hope in a distant future.

Flagging off the NES#30 summit last week, President Tinubu, represented by Vice President Kashim Shettima, solicited collaboration and cooperation from the private sector and international partners in achieving economic growth.

Tinubu outlined his administration’s renewed hope agenda, designed to create an environment that fosters sustainable economic growth and shared prosperity.

Stronger economy

Tinubu urged Nigerian citizens not to waiver or despair. He said his administration’s policies were a clear cutout designed for mass Nigerians as beneficiaries. “We are currently completing key infrastructure projects such as roads, railways, and power plants that will enhance connectivity and productivity.

“We are harmonising regulatory processes to reduce the bureaucratic hurdles that have long stifled entrepreneurship and innovation,” the president noted.

President Tinubu also highlighted recent economic measures, including the removal of fuel subsidies and the unification of foreign exchange rates, as part of a broader strategy to stabilise the macroeconomic environment.

In 30 years of its existence, NES’s yearly summit

“These are all part of a broader effort to restore balance to the economy and ensure long-term stability,” he explained. Addressing the critical issue of economic inclusivity, President Tinubu said: “Our competitiveness is not just about improving our standing on global indices.

It is about ensuring that the Nigerian economy is inclusive—where small and medium-sized enterprises can thrive alongside large corporations and where every citizen, regardless of location or background, can benefit from economic opportunities.”

“With the right policies, the right partnerships, and the right level of commitment, Nigeria can emerge stronger, more competitive, and more resilient than ever before,” Tinubu assured.

Minister of Budget and Economic Planning, Atiku Bagudu, reiterated the effectiveness of re – cent government reforms, stating that “there are significant pieces of evidence that reforms and investments are working.

“These governance and institutional reforms have helped to improve our macro-economic performance. Our GDP has been enhanced from 2.98 per cent growth in the first quarter of 2024 to 3.19 per cent in quarter two of 2024; inflation is trending downwards while external reserves are improving.”

The minister also appealed for public support, saying, “we seek cooperation and understanding of the broad spectrum of the citizenry, as there is indeed light at the end of the tunnel.”

World Bank’s target

The Bretton Wood institutions represented by the World Bank and International Monetary Fund (IMF) are unarguably champions of adaptation of policy reforms— fuel subsidy removal and liberalised forex—as a way to free Nigeria’s economy from disruptive chains.

At the NES#30, senior officials of the World Bank from Washington, DC, and a delegation of the country office led by Country Director, Mr. Ndiame Diop, attended the event.

The global bank lauded the government for staying the course of painstaking policy reform. It urged a drastic cut in the governance expenditure and accelerated implementation of social safety disbursement to the vulnerable.

The Senior Vice President of the World Bank Group, Mr. Indermit Gill, said Nigeria must maintain its ongoing economic reforms for the next 10 to 15 years to establish itself as a leading economic power, not only in sub-Saharan Africa but also on the global stage.

The reforms, he said, were crucial for ensuring sustainable growth and development, allowing Nigeria to compete with other emerging economies worldwide.

Gill stated: “Nigeria will need to stay the course of current economic reforms for at least the next 10 to 15 years to transform its economy.” His advice drew negative comments from the audience. “I don’t know if you are agreeing or disagreeing with me.

If these reforms are sustained, Nigeria will transform its economy and become an engine of growth in sub-Saharan Africa. “It is very difficult to implement such reforms, but the rewards will be massive if they are maintained,” he added.

Inclusive growth

The goal of achieving inclusive growth is not one to be won alone. The Federal Government reckons this. At the wrap-up session last week, it gave a firm commitment to forging partnerships with private sector CSOs in actualising an inclusive future that caters to all citizens.

Vice President Shettima, represented by Bagudu, emphasised government’s commitment to fostering inclusive growth. “From the inception of our administration, we understood and accepted that partnership with the private sector was essential for the country’s economic growth and development.

“Over the last three days, this summit has facilitated deep and meaningful conversations among public, private, and civil society leaders. “Together, we have created an environment of mutual respect and dialogue.

“This understanding has informed our engagement with the Summit process, which has generated many policy recommendations for government action,” he said. He assured that the recommendations of the three-day summit would be implemented by the Federal Government.

According to him, “I assure all participants, including business community members, that we shall align such recommendations with government priorities for implementation.”

The Vice President further assured that the present administration would stay the course in the implementation of the current economic reforms.

While commending the Nigerian Economic Summit Group for organising the Summit, he pledged that the Federal Government would continue to collaborate with NESG to organise future summits.

Last line

In 30 years of its existence, NES’s yearly summit recommendations form part of policies adopted by successive governments as a compass to navigate the economy from storm.