By Babajide Komolafe 

Comercio Partners Limited, an investment banking firm, has advised the new administration of President Bola Tinubu on policy measures needed to fast-track the nation’s economic growth including comprehensive policy reforms and improved governance.

Co-Managing Partner, Comercio Partners and CEO of the asset management subsidiary of the firm, Tosin Osunkoya, gave this advice in a review of the Gross Domestic Product, GDP, report for the first quarter, Q1’23.

According to the National Bureau of Statistics, NBS, GDP growth dropped to 2.3 % in Q1’23 from 3.1% in Q1’22, with the agric sector contracting for the first time in seven years by 0.90% during the quarter.

Noting that the decline in growth can be attributed to a combination of factors including naira scarcity during the period, volatility in global oil prices, inadequate infrastructure, and an uncertain business environment coupled with continuous and aggressive rate hikes from the nation’s apex bank, Osunkoya said: “The fact that Nigeria’s agricultural sector contracted for the first time in over seven years is undeniably concerning. 

Commenting on the 6% GDP growth target of President Tinubu, Osunkoya said: “I am confident that if resources are channeled properly, backed with unbiased economic policy reforms, the new government will be able to achieve and even surpass this growth target. To achieve this, the new administration should prioritize sectors such as the agricultural and services industries. 

“While these sectors face unique obstacles as they grow, one key setback that must be addressed is insecurity. The new government must use all available resources to keep Nigeria safe from terrorism, banditry, and kidnapping. This will help strengthen the confidence of both foreign and domestic investors. No economy, business, and society can grow or develop in an unstable, chaotic environment.

“Furthermore, it is very crucial at this point to examine the support mechanisms provided to farmers by both the monetary and fiscal authorities. Access to modern farming techniques, quality seeds, fertilizers, and adequate irrigation facilities are vital for enhancing productivity.”