US Official urges Nigeria to take critical steps for sustainable growth
The United States Deputy Treasury Secretary, Adewale Wally Adeyemo, has expressed the willingness of the Biden administration to help Nigeria’s growth, but only if the country takes critical steps to sustain its foreign investments. Speaking at the Lagos Business School, Adeyemo highlighted some crucial measures needed for sustainable economic growth and the creation of economic opportunities for the Nigerian people.
Firstly, Adeyemo emphasized the need for Nigeria to invest in digital infrastructure and improve its macroeconomics in order to attract foreign investments. He stated that a stable naira and a unified foreign exchange rate would create the essential macroeconomic stability required for attracting foreign investors. Despite acknowledging the challenges in unifying the exchange rate, he stressed that going backward would be even worse.
Secondly, Adeyemo emphasized the importance of Nigeria articulating and implementing a credible fiscal strategy that would provide the resources needed for critical investments. He acknowledged that ending fuel subsidies was a difficult decision for many households, but it was a necessary step to generate resources for investments in physical and digital infrastructure, education, and a strong small business environment. Adeyemo highlighted the agricultural industry as having significant potential that remains untapped due to issues such as limited access to fertilizers, new technology, water, land, credit, and high market entry costs.
Additionally, Adeyemo noted the need to address corruption and its perception in the business environment, as it creates fear among potential investors. He stressed the importance of the Nigerian government taking meaningful steps to shine a light on corruption, hold people accountable, and improve the business climate. He suggested that moving government functions online would not only improve services and productivity but also reduce opportunities for corruption.
Furthermore, Adeyemo stated that protecting the integrity of Nigeria’s financial system is imperative for sustaining economic growth. He expressed the US government’s commitment to working with the Financial Action Task Force to tackle money laundering and terrorist financing in Nigeria. Adeyemo also emphasized the Biden administration’s belief in deepening the relationship with Nigeria.
In conclusion, the US Deputy Treasury Secretary outlined critical steps Nigeria needs to take for sustainable growth and attracting foreign investments. By investing in digital infrastructure, improving macroeconomics, creating a conducive economic environment, rooting out corruption, and protecting the financial system, Nigeria can unlock its economic potential and create opportunities for its people. The Biden administration stands ready to support Nigeria in this journey towards sustainable growth.
