According to Tilewa Adebajo, CEO of CFG Advisory, Nigeria requires a focused industrial strategy to catalyze manufacturing investment and stimulate broader economic growth. Speaking on CNBC Africa, Adebajo emphasized that while exchange rate liberalization and macro-level adjustments are necessary, they serve only as a starting point rather than a complete solution.
Adebajo pointed out that the current four per cent growth rate fails to meet the needs of Nigeria’s large population. He suggested that sustained annual growth between eight and 10 per cent is essential to improve living standards and foster job creation. He noted that structural barriers, specifically high financing costs and poor infrastructure, continue to hinder the manufacturing sector.
The current fiscal environment, characterized by heavy government borrowing and high debt-servicing requirements, has driven commercial lending rates as high as 35 per cent. This makes it challenging for businesses to fund long-term operations. To address this, Adebajo advocated for fiscal discipline alongside targeted industrial policies. He emphasized the necessity of creating bankable, large-scale projects in sectors like energy, transportation, and agro-processing to bolster domestic capacity. By utilizing Nigeria’s vast internal market and the African Continental Free Trade Area, policymakers could attract manufacturers focused on exports. Ultimately, he argued, the success of current reforms will be measured by their tangible impact on industrial investment and productivity.
