“Rapid growth”: Nigeria named as one of the ‘big three’

by Stanley Azuakola

Believe it or not, Nigeria is growing and the growth will not end, at least for the next two years. This is the position of Ernst and Young, one of the world’s largest professional service firms in the world.

In its newly released quarterly Rapid-Growth Forecast (RGMF), the firm said that Nigeria remains one of the three fastest growing markets among the 25 leading rapid-growth markets. But the key to maintaining that position, the report says, is power (Note: It’s the “power sector,” not political “power tussles”.)

Along with Nigeria, Ghana is another country mentioned in the report as one of the three fastest growing.

Overall, since the beginning of the year, economic growth among the 25 leading rapid growth markets has been declining. The report, however, argues that the decline is only a temporary blip, and it is expected that the rapid growth markets would bounce back.

Senior economic adviser to Ernst & Young’s Rapid Growth Markets Forecast, Carl Astorri explained: “The RGMs are well placed to weather the major risks facing the global economy at the present time, given that they have the space to relax fiscal and monetary policy. This has already happened in some RGMs including in all of the BRICs. It is likely that there will be further easing of monetary policy in the months ahead, particularly if the global economy deteriorates further.”

Corroborating the point made by Mr. Astorri, the co-leader of the Emerging Markets Centre at Ernst & Young, Alexis Karklins-Marchay stressed that,  “Although slower expansion in the rapid-growth markets is likely this year it will only be a blip and we will see a return to significant growth towards the end of the year. Soaring domestic demand in economies starved, for some time, of investment and consumption will offer business exciting new markets for goods and services in the years ahead.”

On Nigeria, the senior partner, Transaction Advisory Services, Ernst & Young, Nigeria, Bisi Sanda, expressed a view already shared by most Nigerians, which is that the power sector holds the key to the Nigeria’s economic growth and development.

“If the government of Nigeria completes its privatisation of the power sector assets in 2012, it will provide much required fresh breath to the much delayed reactivation of stimulus of the manufacturing sector, including the reactivation of over 100 textile mills that closed down or relocated from Nigeria between 2000 and 2007. Power is an enabler in Nigeria,” Sanda said.

Comments (3)

  1. Once again, the deluded noisemakers on twitter who pride themselves as analysts and activists are caught napping, but they haven't seen nothing yet, this Jonathan administration will show them that success depends on vision and relentless hard work , not empty self glorification and clamping to know everything, they know nothing

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