By Kayode Ogunwale

Listing infrastructure companies on the Nigerian Exchange Limited (NGX) has been highlighted as a significant catalyst for promoting economic growth in Nigeria. During an event titled “Outlook for the Nigerian Economy in 2025,” organized by the Finance Correspondents Association of Nigeria (FICAN), Mr. Ugodre Obi-Chukwu, the Chief Executive Officer and Founder of Nairametric, discussed various factors influencing the country’s economic trajectory.

Obi-Chukwu underscored the importance of structural shifts, impactful reforms, and external economic influences that could propel Nigeria’s domestic economy forward by the year 2025.

He emphasised the necessity for the mandatory listing of companies involved in major infrastructure projects, with a specific reference to pivotal initiatives like the Lagos-Calabar Coastal Highway. Such a mandate, he argued, could significantly bolster Nigeria’s economic framework by enhancing visibility and support for vital infrastructure development.

Through the listing of these infrastructure firms on the NGX, Obi-Chukwu believes that Nigeria can unlock various benefits, including increased economic growth, transparency in operations, and greater accountability in how projects are managed and financed.

By allowing public investment in these companies, citizens would not only have the opportunity to contribute to these projects financially but would also be able to reap the benefits and profits generated, fostering a sense of ownership and involvement in the nation’s economic activities.

Moreover, Obi-Chukwu pointed out that this approach would also mitigate the risk of wealth concentration among a select few. Instead, by democratising investment opportunities and ensuring that a broader segment of the population can participate, this initiative would promote a more equitable distribution of wealth throughout the country.

He argues, the enhanced transparency and accountability that comes with such listings would ensure that Nigerians see tangible returns from infrastructure investments, which in turn could catalyze a more inclusive economic growth model.

He notes that developed economies have robust capital markets, often exceeding their GDPs, whereas Nigeria’s capital market is valued at N60 trillion, significantly lower than its GDP of over N200 trillion.

According to him, one key area of focus is infrastructure development, particularly transportation projects that will spur the creation of new living areas and cities. “This, in turn, will attract investment and population shifts, driving economic growth.

Another critical reform is the Tax Bill, which is expected to be a net positive for businesses. This to him, will encourage states to court businesses to establish headquarters, leading to increased competition and improved governance.

“Consumer-driven growth will also play a crucial role in driving Nigeria’s economy forward. Accelerating consumer credit is essential to drive GDP growth through increased domestic spending.

However, while the country will also faces challenges, including tougher immigration policies that will make it harder for Nigerians to migrate abroad. This will create demand for domestic training, education, and talent development initiatives.

“Technological solutions, such as robotics and off-grid computing, will also help ease workforce challenges caused by migration.

In terms of external influences, Nigeria is expected to pivot towards Eastern markets, necessitating strategic currency swap deals. “The African Continental Free Trade Area (AfCFTA) will also face a stress test, potentially bolstered by China’s support for its success.

He further explained that, a GDP rebasing uplift is expected to trigger changes across sectors as the economy adjusts to its larger size. “This could lead to increased federal government borrowing, balancing opportunities against risks. Inflation rates may also decline, potentially reaching single digits”, He added.

This move, he believes, would enhance capital formation for critical infrastructure development and promote broader wealth distribution across the country.