Nigeria needs 10% annual GDP growth to improve the living standards of its citizens – CIS – Blueprint Newspapers Limited

Chartered Institute of Stockbrokers (CIS) President Olatunde Amolegbe said that in order for Nigeria to realize the potential inherent in its economy and improve the standard of living of the people, the country must push for a Gross Domestic Product (GDP) annual average) growth rate of 10% or more over the next 10 to 20 years.

Speaking at the CIS annual workshop on Leveraging Financial Markets to Achieve Double-Digit Economic Growth for Nigeria, he said the annual GDP growth rate of the economy is at a low single digit level.

He said that outside of Nigeria which has a massive infrastructural and educational deficit
to be covered, it also faces a significant job deficit.

According to him, “Nigeria is obviously endowed with immense human and natural resources, unfortunately we are also ranked among the poorest countries in the world in terms of per capita income. Just recently, in 2020, the country fell into its second economic recession in five years, although largely attributed to the covid-19 pandemic which affected every country in the world and we emerged from recession in the fourth quarter of the year. same year 2020. “

In his explanation, he said: “The critical point that we must note is that historically it has been observed that the poorest countries need a much faster rate of GDP growth than the advanced economies of the world. to maintain their standard of living as well. like keeping up with the higher population growth rate compared to developed economies.

“In fact, if we review the economic history of Nigeria, we will observe that this phenomenon is not new. In 1970, we recorded a GDP growth of 25.01 percent.

The following year we recorded 14.24 percent, while in 1974 it fell further to 11.16 percent. “
He said most of the country’s basic economic infrastructure was built around the 1970s, noting that Nigeria’s last double-digit GDP growth record was in 2002, when the indicator rose 15.33%.

He said the theme of this year’s workshop has become imperative to boosting the Nigerian economy, as driving the economy will require funding in the right form, the right type, and the right mix.

The IEC President said that despite the best efforts of the government, it cannot be said that the local financial market has been optimally used, adding that the trend needs to be reviewed and reversed.

Speaking further, he said: “Not so long ago, the use of the capital market was the backbone of fundraising by all different levels of government. This fund is still used for infrastructure development. Full government tax liability subscription, which is a form of borrowing, has been widely used because the level of risk is almost zero.

“In addition, government participation in the market is a win-win business for government, the market and investors. The time has come for all levels of government to organize a return to the financial market to improve capital raising for infrastructure development. Our seasoned facilitators will certainly do justice to this tried and true theme today.

“It is obvious that an accelerated development of infrastructure will lead to the creation of jobs and employment opportunities with multiplier effects on the country’s GDP. China’s GDP grows by an average of 10 per year. This has lifted over 800 million people out of poverty in recent years. “

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