By Chinwendu Obienyi
To ensure its strategies are better aimed at improving its economyic growth, the Federal Government says it will further strengthen the framework for concessions and public private partnerships (PPPs) by 2022.
Nigeria’s Vice President, Prof. Yemi Osinbajo, stated this during the Nigerian Exchange Limited (NGX)’s Capital Markets Conference which held in Abuja, on Tuesday.
Osinbajo, while speaking at the conference themed;”The future ready capital market: Innovating for Nigeria’s sustainable recovery”, said the NGX can spur the growth of the economy and must be prepared to work with the country’s AfCFTA negotiators especially as it is progressing towards setting the rules in the services sector.
He noted that the government has looked at Rules of Origin adding it was high time the exchange partners with the government to get the very best deals possible for all its partners all over Africa.
He further said the recently approved Medium Term Expenditure Framework (MTEF) by the Federal Executive Council (FEC) contains robust strategies for achieving growth.
“The MTEF envisages that the economy will grow from about 3 per cent this year, rising to 6.33 per cent in 2025. Next year, the FG will further strengthen framework for concessions and public private partnerships especially as they relate infrastructure”, Osinbajo said.
Whilst highlighting the performance of the NGX in 2020, the Vice President expressed concern that the exchange has experienced a run on foreign and domestic institutional participation, leading to a year-to-date return of 4.65 percent.
“To correct this and usher in the return of foreign and domestic institutional participation, all government agencies, regulators in our financial system must work with the NGX to ensure that the excessive premium in the market is abated and foreign investors are assured of foreign exchange mechanisms and other regulations that will enable them to channel their resources in and take their resources in and out with the least constraint”, Osinbajo said. According to him, the government has shown its commitment with working with the NGX and so the point of reassuring investors of an enabling business environment is not lost on us as a government. Also speaking the conference, the Speaker of the House of Representatives of Nigeria, Femi Gbajabiamila, said capital is the live -blood of commerce and without capital, while adding that the government has a responsibility to ensure the free flow of capital subject for necessary regulations but governments all over the world do not take this into account.