NESG: Gaps in Strategy, Execution Could Hinder Nigeria’s Long-term Economic Progress

Raheem Akingbolu

he Nigerian Economic Summit Group (NESG), has identified lull in the Nigeria’s economic growth, which it insisted was making the country to lag behind in its targets set in its Medium-Term National Development Plan. The group has also observed that the performance of 68% of economic activities is currently a drag on the country’s growth, impeding overall economic progress.

Speaking recently at a forum organised by the Advertising Regulatory Council of Nigeria, (ARCON) the CEO of NESG, Dr. Tayo Aduloju, though admitted that the Nigerian economy sustained GDP growth; he however pointed out that growth Lags behind MTNDP Targets because the economic performance is constrained by elevated macroeconomic instability and reluctance of various stakeholders in the Nigeria economy to deplore a cutting edge strategy and effective execution. 

Speaking on the state of the Nigerian economy, Aduloju provided a context for the Advertising industry by looking at the current challenges in the Nigeria economy and the mitigating factors. He specifically spoke to the inherent opportunities of a weaker currency and advantages for export of goods and services.

He said, “The performance reflects the cumulative gains from exchange rate reform and robust financial sector growth, alongside weak growth in major sectors such as agriculture, ICT, and other key areas. The revenue growth is motivated by subsidy removal, expansion in crude oil outputs and exchange rate depreciation. On the other hands, the rising public debt is motivated by elevated macroeconomic instability, interest rate hikes and exchange rate devaluation and new borrowing. Currently, the performance of 68% of economic activities is currently a drag on the country’s growth, impeding overall economic progress,”

Speaking further, Aduloju who also stated that external position improved on the back of higher crude oil production, was quick to add that “the impacts of higher inflation is hitting harder, though decelerating at the moment.”

Looking at the 2024 economic performance, Aduloju said the Nigeria’s external trade expanded in H1-2024 by 153%, motivated by 199% and 107% rise in exports and imports, respectively. 

“In Q1-2024, capital importation more than tripled (Y-o-Y) to US$3.38 billion – a 4-year high. However, the struggle with FDI continues, accounting for 3.6%. As of September 2024, the foreign reserves had increased to US$37 billion from US$32.91 billion at the end of 2023.” he stated. 

Looking beyond Nigeria and mixed signals for the global economy, the NESG Boss stated that the past four years have put the resilience of the global economy to the test but observed that the economy is set for soft landing and stabilisation.

“A once-in-a-century pandemic, eruption of geopolitical conflicts, and extreme weather events have disrupted supply chains, caused energy and food crises. The global economy is set for soft landing and stabilisation. Growth is projected to steady at 2.6% in 2024 and increase to 2.7% in 2025-26.

“The global risks persist amidst recovery and are biased against emerging and developing economies: More trade and geopolitical tensions (major economies are becoming inward-looking), high interest rates, etc.” he added.

Speaking on strategies available for businesses to navigate challenges effectively, Aduloju recommended product diversification, technology for marketing, market research, consumer insight,  regulatory compliance, among other strategies. 

The event brings together professionals from different sectors of the industry to share ideas, network and discuss trends that are shaping the industry globally and in Nigeria.