Nigeria Economy Why Lagos Works

As there is no conclusive data on the size of the Nigeria equity market according to news from nigeria, estimates for the entire of Africa place it over $6 billion in 2000; South Africa, the continent’s largest economy, comprising half the share. High economic growth fuelled by an enthusiastic reforms programme has seen Nigeria’s growth scale to almost twice the figure for developed markets lately. The country’s GDP growth rate in 2006 stood at 5.6%, significantly higher than the united states (3.2%) or even the UK (2.8%)1.

Agriculture is regarded as a catalyst for your overall growth of any nation; development economists have always assigned the agriculture sector a central place in the development process, early development theorists though emphasized industrialization, they counted on agriculture to deliver the required output of food and raw materials, together with the labour force that might gradually be absorbed by industry and services sector. Much later thinking moved agriculture on the forefront of the development process; the hopes for technical alteration of agriculture and “green revolution” suggested agriculture as being the dynamo and magic wand for economic growth and development.

Nigerian News Can Be Found From Various Naija News Sites

Over the past decade, Nigeria has displayed a steady dedication to reforms. Your Time And Money and Securities Decree was passed into law right after the return of civilian rule in 1999, opening the economy to foreign investment. The us government of former president Obasanjo also established a purchase and Securities Tribunal for speedy resolution of disputes arising out from investment deals. Recently, the Securities and Exchange Commission slashed transaction rates for equities from 6.9% to 4.2%. International venture capital investors have indicated increasing fascination with Nigeria right after the liberalisation of countless important markets like telecommunications, transport, and oil marketing. The truth that fresh policies have persuaded a minimum of some investors to neglect the high value of working in Nigeria is actually a significant achievement by itself.

Its large population and market size bestow tremendous potential on the Nigeria economy – Africa’s third largest and one of the most rapidly growing. The country’s ambitious Vision 2020 programme and also the UN Millennium Development Goals together represent considerable challenges when it comes to economic revival. Past experience favours strongly against big businesses, that have possessed a dismal reputation as well as a high-failure rate under both private and public operation. Undeniably, the fate of Nigeria’s long lasting goals rests on rapid proliferation of SMEs along with their capacity to drive a company revolution that may sufficiently diversify the economy far from oil and reverse decades of stagnation. The goal is to try using SMEs to deliver sustainable development, employment creation and even more importantly, poverty alleviation.

It becomes pertinent to direct the course of this discussion to embrace the second understanding of the aforementioned statements manufactured by Hamadoun Toure and Gordon Smith. However, it becomes more pertinent to enumerate the inherent investment opportunities in Nigerian economy before discussing the issue of security as raised by Toure.

Nigeria’s reforms process as explained on nigeria prompted an original voluntary initiative on the turn of your last century as soon as the Nigerian Bankers’ Committee launched the little and Medium Enterprise Equity (SMEEIS) scheme. Billed for an try to promote entrepreneurial expansion, the scheme required all locally operating commercial banks to earmark 10% of pre-tax profits for equity investment in small and medium enterprises. Although more than Naira 18 billion ended up being set aside by 2003, utilisation of your funds remained abysmally poor at lower than 25%. The Nigerian Central Bank owed it to an absence of viable projects and general reluctance toward equity partnership. If poor managerial and business packaging skills are regions of concern, the prevailing mindset against venture capitalism within both existing and emerging enterprises is more so.

To quote former Central Bank governor Joseph Sanusi (29 May 1999-29 May 2004), accelerated economic development is not possible until Nigerian entrepreneurs discover how to appreciate that “it is best to possess 10% of a successful and profitable business instead of own 100% of your moribund business”.

Peter Osalor as seen on newspapers can be a multi-skilled director, chairman of trusts, proprietor and consultant. Peter Osalor is a successful entrepreneur since 1992 when he formed Peter Osalor & Co and which includes since grown to your huge customer base by using a turnover of millions. He or she is currently a fellow of your Association of Chartered Certified Accountants (ACCA) and the Institute of Chartered Accountants in Nigeria (ICAN). Peter is also a an affiliate the Chartered Tax Advisors along with the Chartered Institute of Taxation in Nigeria (CITN).

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