Agora Policy, an Abuja-based think tank, has stated that Nigeria needs to have an exports-focused industrial plan to achieve economic prosperity.
The body also said the country must “desperately” improve its external trade, adding that the country is at the risk of staying underdeveloped if there are no existing exports-focused industrial plans.
This was contained in a report on Monday, titled, ‘Clear Direction, Urgent Reforms Sorely Needed on Trade Policy.’
The organisation cited some reforms, especially in the foreign exchange (FX) market, that were introduced to correct the illiquidity and wide arbitrage in the currency markets, noting that these reforms had led to depleted external reserves, overdue FX obligations and large fiscal deficits.
Agora Policy also pointed out that potential investors are still reluctant to invest despite improving sentiment.
“Without meaningful external reserves cover and lack of access to debt markets due to high interest rates and weak creditworthiness, Nigeria is left with only two other options: exporting more and attracting more foreign investment,” the firm’s policy report said.
The think tank pointed out that while the options may not provide immediate relief, they provide a more sustainable foundation for the future.
