For Nigeria, climbing out of this recession characterized by widespread unemployment, low productivity, rising inflation, low revenue from oil sale, non-payment of salaries across more than three-quarter of the 36 states, reduced purchasing power, among others, demands painstaking strategies that have worked in other nations. There are many misconceptions about how to stimulate the economy, but the fail safe ways are apparent, tested and have been successful.
Instead of just pumping more money to the economy, getting out of a recession is anchored on one single act. And what is it?
Increasing business investment! Every thing that drives an economy is anchored on getting business investment going again.
When businesses have resources to invest in new capital equipment, they improve models of doing business, expand capacity and multiply productivity to increase profit. Increased profits lead to more hires and higher wages and salaries. Higher disposable income further leads to expansion of production capacity.
The cycle continues until the economy is in a good place.
So, how can the government of President Muhammadu Buhari increase business investment?
Provide an enabling environment for businesses to start, survive, thrive and expand. So that more people are engaged and have money to buy products produced.
Here are some ways to stimulate investment in businesses:
1. Improve immediately power supply, make it regular, constant and cheaper
2. Provide massive infrastructure to make life far more easier
3. Cut drastically recurrent expenditure and increase massively capital expenditure
4. Cut interest rate to a single digit and scientifically assist enterprises of the future which will grow the economy
5. Encourage entrepreneurship in all ways and manner
6. Promote locally made goods with raw materials sourced internally
7. Plant patriotism in the minds of Nigerians by preaching and practicing patronage of made in Nigeria goods
The strategies are many, but they must all be focused at stimulating business investment.