By Chinwendu Obienyi
In with its transformation agenda, the Federal Government on Thursday, stated that it is working to improve the nation’s local manufacturing and overall industrial capacity.
This was even as it noted that the capital market remains a key component and enabler of the country’s growth ambitions.
Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, said this during the Nigerian Exchange Limited (NGX) CEO Roundtable held virtually in Lagos, yesterday.
Speaking on the theme; Creating the Enabling Ecosystem for Accessing Capital from the Nigerian Capital Market (NCM), Adebayo, commended the NGX for organising the forum, stressing that the Nigerian economy has been able to maintain strong growth in the past six quarters, adding that the growth has been built across expansionary monetary policies.
He revealed that the country’s efforts in reducing its reliance on the oil and gas industry is proving fruitful according to data from the National Bureau of Statistics (NBS) adding that with Nigeria’s GDP of over $400 million, government was working diligently in tackling challenges of low productivity, insecurity and adequate infrastructures.
“These are areas the government is working diligently to improve and our efforts are producing a continued upturn as GDP growth came in at 3.1 per cent y/y in real terms in the Q1 2022, indicating that the second quarter might be a quarter of positive growth. Undoubtedly being one of the fast growing economies, Nigeria could move up in place of global GDP ranking by 2050. To achieve this, we must successfully continue to diversify our economy, strengthen its institutions and infrastructures by building a vibrant capital market”, Adebayo said.
Whilst stating that the inherent potential of the capital market is enormous, the Minister listed low liquidity, inadequate participation, high transaction cost, stunted growth in equity listings, low market penetration amongst others affecting the performance of the NCM.
“One of Nigeria’s high developmental ambitions is the driving of strategic investments in the country’s real sector and as part of its transformation agenda, the Federal Government is working to improve local manufacturing and overall industrial capacity. We have 17 operational economic zones and four more under construction as they support large scale manufacturing, export processing, warehousing, tourism, food packaging and logistics while three are dedicated to oil and gas activities.