Yusuf: Right environment, incentives needed to tap private capital

The Chairman of the Nigerian Economic Summit Group, Olaniyi Yusuf, emphasized the importance of creating the right business environment and incentives to unlock private capital necessary for spurring economic transformation in Nigeria. Speaking in an interview with CNBC Africa at the 30th Nigerian Economic Summit, Yusuf highlighted key themes that emerged from the discussions, underscoring the private sector's desire for more open dialogue with the government and the need for feedback to be reflected in policies. He outlined three key areas that need attention to drive economic growth and development in the country. First and foremost, Yusuf stressed the significance of fostering collaboration between the public and private sectors. He noted that the private sector is seeking increased opportunities for dialogue and feedback, emphasizing the importance of partnership to drive sustainable development. By facilitating open communication and incorporating private sector input into policy-making processes, Nigeria can create a conducive environment for investment and business growth. Moreover, Yusuf highlighted the vast private capital available in Nigeria and across the continent, citing the substantial funds in the pension and insurance industries. He highlighted the need for the government to provide the necessary environment and incentives to attract and utilize this capital effectively. By offering supportive policies and creating a conducive investment climate, the government can encourage private entrepreneurs to invest in the country, as demonstrated by the success of the diaspora bond initiative. In addition to fostering dialogue and facilitating private capital mobilization, Yusuf emphasized the importance of predictability for businesses. He underscored the need for clear standards, guidelines, and regulatory frameworks to enable businesses to operate efficiently and plan for the future without facing unexpected challenges. By providing a stable and transparent business environment, Nigeria can enhance investor confidence and promote sustainable economic growth. Reflecting on the outcomes of previous economic summits, Yusuf noted the progress made in implementing key recommendations and white papers from previous editions. He emphasized the importance of translating discussions into actionable initiatives to drive economic growth in the country. Addressing critical areas such as security, infrastructure, education, health, and macroeconomic stability, Yusuf outlined the key targets for economic development. Yusuf identified security as a fundamental prerequisite for economic growth, stressing the need for a safe environment that enables farmers to cultivate crops and manufacturers to transport goods. He highlighted the importance of infrastructure development, including electricity, digital infrastructure, and transportation networks, to facilitate commerce and enhance mobility for goods and people. By engaging in public-private partnerships, Nigeria can address infrastructure deficits and create modern, efficient systems to support economic activities. Furthermore, Yusuf emphasized the crucial role of education in equipping the workforce with essential skills for the digital economy. He called for investments in technical and vocational education, digital literacy, financial literacy, and entrepreneurship skills to enhance the employability of Nigerians in a rapidly evolving global landscape. Addressing health concerns, Yusuf underscored the need to strengthen the healthcare system, particularly primary healthcare centers, to ensure a healthy and productive population. Lastly, Yusuf highlighted the importance of macroeconomic stability, noting the positive trend in inflation and the need for exchange rate stability to support business planning and investment decisions. By focusing on these key areas and fostering collaboration between the public and private sectors, Nigeria can lay a solid foundation for sustainable economic growth and development in the years to come.