The Nigerian government has hit the ground running, providing more and more evidence that a Tinubu presidency will not be a Buhari presidency.
Apart from the reforms the new government has introduced, the biggest change in wind is likely the love shown towards the private sector. One barometer of this has been the daily courtesy visits of private sector players to Aso Rock (Nigeria’s version of America’s White House) and the new friendliness in news reports coming out of the likes of Bloomberg.
In a previous article, we argued that Buhari’s legacy and biggest mistake was leaving the economy on autopilot. There was simply no direction.
Now that Nigeria has a new president, there is another opportunity to set the country on its path to reaching its potential. But how? Policies here and there are great, but economic superpowers are born through a collective vision, one overarching theme that removes millions from poverty and creates sustainable economic growth. One of these approaches is export-led growth.
What is it?
Export-led growth is what it says on the tin: you grow your economy by exporting goods and services. But why does that help? For Nigerians, the first thing that comes to mind is foreign exchange. Sell more goods and services, and you earn more dollars to finance our imports such as school fees and petrol. Beyond getting foreign customers, investors worldwide are keen to find growth opportunities for their capital.
However, there are more fundamental benefits as well.