Tolaram: Investment in key sectors crucial to Nigeria's rapid growth
Nigeria's population has put the country at a comparative advantage in achieving rapid growth rate over the next 15 to 18 years, with strategic investment in key sectors including infrastructure. That's according to Deepak Bhojak, the Group Treasurer, Tolaram. Speaking with CNBC Africa on the sidelines of the RMB Nigeria Economic Forum, Bhojak lists distortions to Nigeria's short term growth momentum.
Thu, 13 Mar 2025 14:22:35 GMT
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AI Generated Summary
- Nigeria's demographic advantage underscores the need for targeted investments in education, healthcare, and infrastructure to capitalize on the impending influx of workforce entrants, presenting a unique window for economic expansion.
- External pressures, such as fluctuating oil prices and global geopolitical developments, pose challenges to Nigeria's economic stability, although the nation's positive global reputation provides a buffer against external shocks.
- While concerns loom over elevated interest rates, Nigeria's government initiatives to align local interest rates with international standards and manage inflation could pave the way for a gradual reduction in interest rates, fostering a more conducive business environment.
Nigeria, with its burgeoning population, finds itself in a prime position to achieve a rapid growth rate in the next 15 to 18 years, backed by strategic investments in pivotal sectors such as infrastructure. Deepak Bhojak, the Group Treasurer of Tolaram, emphasized this during an interview with CNBC Africa at the RMB Nigeria Economic Forum. Bhojak underscored the criticality of focusing on sectors like education, healthcare, and infrastructure to leverage the demographic dividend and pave the way for a better quality of life, increased job opportunities, and heightened foreign direct investments in the West African nation. With approximately 50% of Nigeria's population under the age of 18, a projected influx of 110-120 million individuals into the workforce within the next two decades presents an opportune moment for bolstering these essential sectors. Bhojak elucidated that global uncertainties, including political dynamics such as 'Trump 2.0,' could pose challenges for Nigeria's economic stability. Factors such as fluctuating oil prices, influenced by global supply dynamics and geopolitical tensions, might impact the country's budgetary projections. However, he highlighted Nigeria's resilience in the face of external shocks, attributing the positive global sentiments towards the nation to the current administration's adept handling of economic affairs. Despite concerns regarding elevated interest rates, Bhojak expressed optimism that the government's efforts to bridge the interest rate gap between local and international markets, coupled with inflation management strategies, could lead to a gradual reduction in interest rates. In light of prevailing challenges, Bhojak pivoted towards the abundant opportunities Nigeria offers for investors and businesses. Tolaram Group, with its steadfast commitment to the Nigerian market, exemplifies this sentiment through multi-sector investments ranging from food production to healthcare and automotive industries. Noteworthy initiatives include the establishment of Kellogg's cereal factory during economic downturns and diversified ventures in agriculture, consumer goods, and healthcare amidst the COVID-19 pandemic. With over 17,000 employees and 27 operational factories nationwide, Tolaram signifies a beacon of confidence in Nigeria's economic potential and resilience.
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