By Francis Akinnodi

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Investors have tasked the Federal Government to urgently address fiscal, monetary and trade policies as well as insecurity in the country.
Their position came on the heels of the concerns over Nigeria’s record of trade deficit of N1.9trillion in Q2:2021 which caused import bills (N7.0trn) to outweigh export earnings of N5.1tn for the seventh consecutive quarter since Q3:2019.
They maintained that the recent devaluation of the exchange rate, the nation’s weak manufacturing sector, and zero output from the three state-owned refineries may further drive goods trade deficit in the fourth quarter of the year.
They advocated the need for a government strategy that would be more focused on how to improve domestic production as substitutes for imports, while also enhancing export earnings for Nigeria.
An Economist, Dr. Timothy Awe told The Hope that importation of refined petroleum products would continue to put a strain on foreign exchange demand which is further aggravated by smuggling as importation exceeds domestic consumption.
Director General of Nigeria Employers’ Consultative Association (NECA), Dr Timothy Olawale, said, “We believe that as economies of Nigeria are trading partners such as the European Union countries, America and China recovers from the pandemic, the current trade flows are expected to improve significantly.
“More importantly, the implementation of the African Continental Free Trade (AfCFTA) agreement will provide a huge market for Nigerian commodities.
“Nevertheless, intra-and inter-country infrastructure including road, rail, and sea ports will need to be built and rehabilitated in order to reduce the cost for manufacturers and make local goods more competitive.
“A more decisive policy direction should be channeled towards economic diversification of the Nigerian economy to reduce growing trade deficit problem.
“Policies and initiatives to support sectors with export potentials should be top priority for national development.”
An economic analyst, Taiwo Owoeye told The Hope that: “There is no immediate solution or silver bullet towards addressing the negative balance of payment position. However, a pragmatic approach is required over the medium to long term.
“The strategy should be focused on how to improve domestic production as substitutes for imports while also enhancing export earnings.”
President of the Manufacturers Association of Nigeria (MAN), Engr Mansur Ahmed, said that no country can attain the status of being developed without a virile manufacturing base, with the capacity to move the economy from primary production to manufacturing export.
While calling on government to create an enabling environment for industrial development, growth, and prosperity, he said difficulty in sourcing forex for importation of raw-materials and machines that are not locally available have been a critical challenge to the manufacturing in Nigeria.