Tony Chukwunyem 
Analysts at Cowry Asset Management Ltd have said that adequate investment in infrastructure as well as “targeted reforms” are required to make Nigeria’s private sector play its crucial role in ensuring the country’s long-term economic growth.
The analysts stated this while commenting on the August 2024 Purchasing Managers Index (PMI) report, released by the Central Bank of Nigeria (CBN ), last week, which showed that the composite PMI stood at 50.2 points, signalling an expansion in economic activity for the first time in 13 months following a prolonged period of contraction.
According to the analysts, while the report indicates that the expansion is primarily driven by key groups in the private sector, especially services and agriculture, the sector is hindered by challenges such as limited credit access, inadequate infrastructure, inflationary pressures, and unreliable power supply.
According to the analysts, “Cowry Research highlights the positive shift in economic activity, with the August PMI marking the first expansion in over a year. This recovery is primarily driven by improvements in the services and agricultural sectors, although the industrial sector remains in contraction.
“The analysis underlines that Nigeria’s private sector continues to be a crucial driver of sustainable economic growth, yet faces persistent challenges such as limited credit access, inadequate infrastructure, inflationary pressures, and unreliable power supply.
Investment in infrastructure and targeted reforms will be key to unlocking the full potential of these sectors and ensuring long-term economic growth.”
The current administration of President Bola Tinubu has also been making frantic efforts to boost the country’s infrastructure as part of measures to attract investments.
Recall that he recently gave directive to the Director General of the ICRC, Dr Jobson Oseodion Ewalefoh, “to accelerate investment in national infrastructure through innovative mobilisation of private-sector funding”.
President Tinubu also charged him to work assiduously to boost infrastructure development in Nigeria as part of the renewed hope agenda of the current administration. ICRC, in a statement, said:
“In view of the above, Dr Ewalefoh-led management team of the ICRC has streamlined the approval processes of the commission to issue its certificates of compliance within seven days. This will accelerate the turnaround time for approvals by the Commission.
“In line with the charge of His Excellency, President Bola Ahmed Tinubu, GCFR, and following his Renewed Hope Agenda, we have streamlined and updated our approval processes to issue either of the Outline Business Case Certificate of Compliance (OBC) and the Full Business Case Certificate of Compliance (FBC) to Ministries, Departments and Agencies (MDAs) that meet the requirements within seven days.
“This is part of efforts by the current administration to accelerate infrastructure development, bridge the infrastructure gaps and stimulate the economy through investment of private sector funds in Public Private Partnership endeavours,” ICRC explained.
“By streamlining our processes, the Commission is in no way foregoing any of its stringent approval steps or key requirements, therefore, only business cases that are viable, bankable, offer value for money and meet all other requirements will be approved.
“The ICRC cannot do it alone, therefore I implore all chief executives of MDAs to match our momentum and align with this charge of Mr. President to accelerate Infrastructure development and ensure that PPP projects are not stalled at any point but delivered within record time.
“The Commission is ready to partner and collaborate with all MDAs to actualise this,” the statement said. In August, the ICRC DG rolled out a six-point policy direction which among others, focused on accelerating PPP processes, boosting inter-agency collaboration and ensuring innovative financing.
The ICRC was established to regulate Public Private Partnership (PPP) endeavours of the Federal government aimed at addressing Nigeria’s physical infrastructure deficit which hampers economic development.
