Risk Expert Predicts Nigeria’s Economic Boom Amidst Global Challenges

The AERMP predicts an economic boom for Nigeria by 2025, citing government reforms that have led to falling food prices and increased power generation. Director General Olayinka Odutola emphasizes the need to reduce import dependency, support small businesses, and collaborate across sectors to tackle challenges and harness economic potential despite global tariff pressures.

The Association of Enterprise Risk Management Professionals (AERMP) forecasts a decline in inflation and an economic boom for Nigeria by 2025, despite the impact of global tariff conflicts. Olayinka Odutola, the Director General of AERMP, conveyed this outlook in an interview with the News Agency of Nigeria, emphasizing that reforms initiated by President Bola Tinubu’s administration have already started yielding positive results. Odutola pointed to falling food prices and a rise in power generation as indicators of this growth.

Odutola noted that the government’s interventions have successfully curbed price surges typically associated with the Ramadan period by reducing food hoarding. He said, “Food prices have been dropping significantly. So, that means there is something that we are getting right.” Furthermore, he highlighted improvements in addressing insecurity linked to agricultural production, advocating for enhanced reforms in this sector to attract youth participation.

The Director-General acknowledged the increased power generation achievements of the Transmission Company of Nigeria, which has reached 5,713.60 megawatts, stating that this boost is crucial for industrial growth. He urged for sustained support of current reforms to realize Nigeria’s vast economic potential and improve its standing in the global market.

To mitigate the impact of US tariff increases, Odutola advised reducing dependence on imports by fostering local production, improving infrastructure, and enhancing small business capabilities. He remarked, “We must reduce import dependence by all means. We must focus on strengthening local production, whether we like it or not.” He emphasized that small businesses are essential to the economy’s resilience, citing the success of Micro, Small, and Medium-sized Enterprises (MSMEs) in advanced countries.

While commending governmental initiatives that promote low interest rates for small businesses, Odutola insisted that more needs to be done, especially by banks and fintech companies. He urged collaboration among financial institutions to provide better loan options for small enterprises. Additionally, he recommended that various government tiers prioritize the registration of small businesses for improved data collection and comprehensive support.

Lastly, Odutola praised the reforms in the foreign exchange market and efforts in the oil and gas sectors. He also proposed measures to enhance local production capabilities and find alternative energy sources, thereby ensuring sustainable economic growth for Nigeria.

In summary, the AERMP’s forecasts present an optimistic future for Nigeria’s economy, attributing potential growth to ongoing governmental reforms and efforts to reduce inflation. Addressing import dependence through enhanced local production, supporting small businesses, and leveraging increased power generation are pivotal strategies highlighted for achieving economic progress. Mr. Odutola’s insights underscore the importance of collaboration among various sectors to realize Nigeria’s economic potential and enhance its international relevance.

Original Source: nannews.ng