“ Why Nigerians have not felt the impact of GDP growth ”
Financial experts said most Nigerians had not felt the impact of the growth in gross domestic product recorded in the first quarter of this year due to the contraction of some key sectors and the high rate of inflation in the country. country.
They urged the federal government to focus on developing key sectors of the economy in order to slow the Nigeria poverty index.
An investment strategist at Afrinvest, Temitope Omosuyi, in a telephone interview with our correspondent on Friday, said that sectors dominated by small and medium-sized enterprises experienced negative growth in the first quarter.
He said: “SME-dominant sectors such as transport and storage, education, accommodation and food services, and the commerce sector, which account for over 80 percent of total employment, recorded negative performances during the period under review.
“As a result, most Nigerians have not felt the impact of the economic recovery.”
According to Omosuyi, Nigeria’s population growth is estimated at 2.6%, while the economy grew only 0.5% in the first quarter of 2021.
“First, it shows that the population is growing faster than the level of productivity, therefore, the impact of growth will not be felt by an average Nigerian,” he said.
He urged the federal government to tackle the main drawbacks of these sectors, prioritize infrastructure development and tackle worsening security concerns to attract foreign direct investment.
He said: “There is no better time than now for the government to tackle the major drawbacks of the real sector of the economy, which largely depend on parameters of the ease of doing business.
“These factors include access to electricity, access to credit, taxes and legal structure. Moreover, infrastructure has always been a critical challenge for the real sector, but the government has remained constrained in terms of resources to fill infrastructure gaps of over $ 3 billion.
“It is therefore very important to put in place measures to attract patient capital through foreign direct investment. FDI will not be attracted to an unsecured environment, therefore, the worsening insecurity in the country needs to be addressed urgently. ”
An economist, Amarachukwu Nwosu, told our correspondent that the impact of GDP growth would not be felt by Nigerians if high inflation persisted.
Nwosu stressed the need for policies that would stimulate the local economy and ensure sustainable development.
He said, “What Nigeria needs are policies that will improve health infrastructure, education and manufacturing because we cannot grow when we import almost everything we use in the country. Endogenous policies, policies that make the local economy prosper. “
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