The chairman of the Bank Directors Association of Nigeria, Mustapha Chike-Obi has said that Nigeria’s economy will not reach $1 Trillion By 2030.
Obi said this in an interview with ARISE NEWS on Wednesday, adding that a 10-year target is more feasible as it would only require a 7% GDP growth.
He said, “The $1tn economy is a good target but unachievable within seven years for us to aim at. We will not get there. I can say that with a hundred percent confidence.
“It requires a GDP growth rate of over 15% a year, which we have never accomplished and no nation has accomplished a 15% GDP growth in a seven-year period. China is the closest to that but didn’t get there.
“If I am advising the government, I would say, let us do it in 10 years which requires a 7% growth. 7% for 10 years will double your GDP. So, that’s more achievable and more sustainable. Trying to go for 15% GDP will require things that are not sustainable. It is a good plan and I applaud them for the slogan, but they should not make plans based on the slogan but on a more realistic step.”
Speaking on the exchange rate, the BDAN Chairman said the stability of the exchange rate should have more focus than the amount.
“The exchange rate is the result of economic policies and not an economic policy. So, the focus on the exchange rate must be underpinned by what you want your economy to do. We want the economy to grow, we want employment and we want more productivity. All of us will agree on that. So, what exchange rate regime will support those three goals, is what we should be looking at. Not starting from the exchange rate. I prefer stability in the exchange rate rather than the absolute amount.
“If the CBN tells us tomorrow that we are going to be between 1000 and 1500 in the next five years, I think that the economy will accept that, adjust to that and people can plan. But it is the volatility of the exchange rate that is creating the problem. We should have a very stable and sustainable exchange rate and we will adjust to it. You will be surprised at how much investment will come in if the exchange rate is stable”.