What reforms can spur Nigeria's growth?
US Deputy Secretary of the Treasury, Wally Adeyemo says Nigeria must achieve a stable naira, unify foreign exchange rates, implement a fiscal strategy that spurs investments and protect the integrity of Nigeria’s financial system If it aims to achieve the type of growth that creates economic opportunity for its people. Theo Emuwa, Partner at Aelex, joins CNBC Africa for this discussion and more.
Tue, 19 Sep 2023 12:39:04 GMT
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AI Generated Summary
- Increasing investment dollars is crucial to address Nigeria's infrastructure deficit.
- Building a financial system with integrity is vital to attract and retain investors.
- Broadening the tax base and implementing long-term tax policies can enhance revenue generation and foster economic growth.
Nigeria, a country with immense potential for growth, is facing a myriad of challenges that are hindering its economic progress. In a recent interview on CNBC Africa, Theo Emuwa, a partner at Aelex, discussed the key reforms needed to spur Nigeria's growth following soundbites made by the US Deputy Treasury Secretary.
Emuwa emphasized the importance of increasing investment dollars in Nigeria to address the significant infrastructure deficit in sectors such as power, roads, and water. He acknowledged the need for both local and foreign investments to drive economic development and emphasized the importance of creating a conducive environment for investors.
One of the major challenges highlighted by Emuwa was the issue faced by investors when trying to repatriate their funds out of Nigeria. This obstacle not only deters foreign investors but also impacts local investors' confidence. Emuwa stressed the necessity of building a financial system with integrity that allows for easy inflow and outflow of investments.
Discussing Nigeria's fiscal position, Emuwa touched upon the country's debt obligations to the World Bank and the need to enhance revenue generation. He highlighted the importance of broadening the tax base by creating a more favorable environment for businesses to thrive, leading to increased tax collections. Emuwa also emphasized the significance of long-term tax policies that foster economic growth and attract more investors.
Addressing the issue of illicit financial flows, Emuwa pointed out that creating attractive investment opportunities domestically could encourage Nigerians holding assets abroad to reinvest in the country. By implementing policies that make Nigeria a lucrative market for investment, the government can stem the outflow of funds and retain capital within the country.
In conclusion, Emuwa underscored the critical role of policy reforms in driving Nigeria's economic growth. By focusing on increasing investment, enhancing the ease of doing business, and curbing illicit financial flows, Nigeria can pave the way for sustainable development and prosperity for its people.
