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The Chief Executive Officer of The CFG Advisory, Tilewa Adebajo, has expressed that with proper harnessing of its potential, the Nigerian economy could reach $6.
He made this assertion during the Finance Correspondents Association of Nigeria bi-monthly forum in Lagos in June 2024.
Adebajo emphasized that the country's economy has the potential to reach $5tn-$6tn, and if inflation is brought down to around 11 per cent, the economy could grow at about eight per cent.
In his discussion on 'Nigeria’s Fiscal Environment in an Era of Monetary Policy Tightening', Adebajo highlighted that the country's debt servicing now exceeds recurrent and capital expenditures.
He also pointed out that Nigeria's Foreign Direct Investment is currently under $1bn, leading to a situation where a majority of the revenue is used to service debt.
Adebajo raised concerns about the sustainability of Nigeria's debt levels and suggested that negotiations with creditors to restructure and extend debt maturities should be considered.
He also mentioned the need for ongoing economic reforms and revenue drive to avoid facing challenges similar to those experienced by Ghana, Zambia, and Ethiopia.
Adebajo emphasized the importance of addressing the significant infrastructure deficit and growth challenges in Nigeria, stating that the country is poised to become the third-largest economy in Africa, following South Africa and Egypt. Despite ongoing reforms, Adebajo regretted that the Nigerian economy is still experiencing stagflation.
He also highlighted the positive impact of the introduction of the Nigerian Autonomous Foreign Exchange Market and the removal of fuel subsidies, leading to a 130 per cent increase in the FAAC account from May.
