Call for Business Reforms: Nigerian Policy Group Urges Federal Government to Boost Foreign Exchange
A leading Nigerian policy group, the Policy and Governance Discussion Platform (PGDP), has called on the Federal Government to implement critical reforms aimed at improving the ease of doing business in the country. The appeal, made in the group’s second-quarter report released on Friday, underscores the need for strategic measures to drive foreign exchange inflows and stabilize the nation’s economy.
Coordinated by Dr Suleyman Ndanusa, a former Board Chairman of the Securities and Exchange Commission, the PGDP serves as a forum for exchanging ideas on governance to foster Nigeria’s development. In its latest report, the group emphasized the importance of transparent and predictable business regulations, long-term strategies to enhance exports, attract foreign direct investment (FDI), and stabilize the naira.
“The citizens need to cut down on the consumption of foreign goods, while the government should deliberately promote exports,” the PGDP report stated. It also called on international financial institutions, such as the Bretton Woods Institutions, to shift their focus from loan disbursement to ensuring accountability in the use of funds. Promoting local production and reducing reliance on imports were identified as key steps to stabilising prices and supporting economic growth.
The PGDP also addressed the pressing issue of electricity tariffs, urging the government to engage with stakeholders to mitigate the impact of rising costs on businesses and consumers. The group recommended a cost-benefit analysis of the new electricity tariff regime and further studies to identify opportunities and risks within the power sector.
In addition to these reforms, the report highlighted the need for prioritising debt reduction to address fiscal imbalances and signal fiscal responsibility to both foreign and domestic investors. This, the PGDP argued, would be crucial for stabilising exchange rates and attracting much-needed investment.
As Nigerians face increasing economic hardship, particularly with the rising cost of basic foodstuffs, the PGDP proposed a series of measures to revitalise the agricultural sector. These include increased funding and support for agriculture, manufacturing, and infrastructure development, as well as the consolidation of agricultural research institutes to eliminate redundancy. Investing in agriculture and local industries, the group noted, is vital to boosting domestic production.
To attract and retain both local and multinational companies, the PGDP recommended targeted incentives, emphasising Nigeria’s potential for long-term growth and profitability. The group also stressed the importance of conducting policy impact assessments that consider broader economic development beyond immediate public finance concerns.
The call for reforms comes as Nigeria’s position in the World Bank’s annual ‘Ease of Doing Business’ report—a global benchmark for entrepreneurial environments—continues to reflect the significant challenges facing the nation’s business landscape. Covering approximately 190 countries, the report assesses the costs to firms of business regulations, providing a critical measure of a country’s attractiveness to investors.
