Nigerian businesses, citizens under pressure – NESG

Chairman of the Nigerian Economic Summit Group (NESG), Niyi Yusuf, has highlighted the severe economic pressures facing Nigerian businesses and citizens, citing rising costs, inflation, and a sluggish economy.

Speaking on Friday during a press conference heralding the commencement of the 30th Nigerian Economic Summit, Mr Yusuf painted a picture of the country’s economic struggles, underscoring the urgency for reforms and collaborative efforts to alleviate the situation.

The summit, themed, “Collaborative Action for Growth, Competitiveness, and Stability,” is expected to focus on bringing together experts from government, business, and civil society to devise actionable strategies aimed at reversing the current economic trajectory.

It is scheduled to take place in October 2024 and is expected to provide a platform for dialogue on critical issues, including security, human capital development, and the need for regulatory reforms to foster a more competitive business environment.

“Our businesses and citizens are under massive pressure from rising costs, inflation, and a struggling economy,” Mr Yusuf said, noting that the challenges have compounded over the past year.

Nigeria’s inflation rate has remained persistently high, further driving up the cost of living and putting millions at risk of poverty.

He pointed out that the rising cost of food and necessities has pushed 104 million people into poverty in 2023, up from 100 million the previous year.

The NESG chairman attributed the country’s economic woes to structural issues that have hindered sustainable growth.

He remarked that while Nigeria recorded a 3.2 per cent GDP growth in Q2 2024, compared to 2.5 per cent in the same period the previous year, the benefits have not translated into better livelihoods for the average Nigerian.

“Nigeria’s weak economic performance is reflected in declining living standards, with per capita income falling significantly and poverty rates soaring,” Mr Yusuf said.

He also expressed concerns over food insecurity, highlighting projections that 26.5 million Nigerians could face acute hunger by the lean season in mid-2024, up from 18.6 million at the end of 2023.

Mr Yusuf further emphasised that under-five malnutrition remains a critical issue, with over 38 per cent of children affected.

In response to these growing challenges, he called for bold, decisive action.

Mr Yusuf stressed that the country’s economic potential remains vast but can only be realised through transformative political leadership, innovative governance, and concerted efforts to address inflation, unemployment, and infrastructure deficits.

READ ALSO: Edo 2024: INEC chairperson monitors mock accreditation in Edo

He called for an urgent rethinking of Nigeria’s economic policies to ensure that future growth is inclusive and improves the livelihoods of all citizens.

Speaking at the event, the Minister of Budget and Economic Planning, Abubakar Bagudu, who was represented by the Permanent Secretary in the ministry, Emeka Obi, highlighted that the 30th Nigerian Economic Summit aims to address Nigeria’s pressing economic challenges by focusing on collaborative action for growth, competitiveness, and stability.

He emphasised the importance of the private sector as the engine of growth, adding that the government will create a favourable environment for investments.