The Managing Director and Chief Executive Officer of Financial Derivatives Co Ltd, Bismarck Rewane, says Nigeria’s economic growth in 2020 will be dependent on three sectors.
Rewane, who said at the Public Relations Consultants Association of Nigeria’s breakfast meeting, explained that Nigeria’s economic growth would be driven by agriculture, manufacturing and the telecommunications sectors.
The event focused on the Nigerian Economic Outlook in 2020 and its implications for the marketing communications sector.
“The three key sectors predicted to play significant roles in the growth process for the industry are the telecommunications, retail and Fast Moving Consumer Goods business,” Rewane, who is a member of the Presidential Economy Advisory Council, said.
Government Projects that will shape economy: The renowned economist also stated that Nigeria’s business environment would be shaped by initiatives from the government. He said the economy would be expanded while foreign direct investment would increase.
Rewane said the shaping of the economy and attraction of Foreign Direct Investment would be due to projects like construction projects; Lekki Deep Seaport, Lagos-Ibadan railway as well as the newly introduced Finance Act. Other factors are border closure policy, the cost-reflective electricity tariff policies, and the cashless policy among others were bound to expand the economy and attract more foreign direct investment.
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More businesses to spring up: According to Rewane, more businesses will be created despite the projection of slow economic growth. He said the establishment of these businesses will lead to increase in advertising and marketing communication spend by companies.
“I believe with the Federal Government introducing intervention policies and subsidies, it is certain that more businesses would spring up which would consequently necessitate increased spending on advertising and marketing communications generally.” Rewane said.
More businesses, more job loss: Rewane’s projection is in line with the Nigeria Employers’ Consultative Association (NECA) projection, which says more jobs will be lost in 2020 as unemployment will grow in the country.
NECA disclosed that the rate of unemployment in Nigeria may rise to 33.5 per cent next year from the current rate of 2019, pegged at 23.1%.