Nigerian CEOs are confident about the growth and prospects for the country's economy in the next three years, according to a recent survey conducted by KPMG Nigeria.
Among the list of concerns held by the CEOs, cyber security risk topped the threats to growth in 2019. Looking at the previous year, issues such as operational risk, technological disruption and millennials' behaviour were the main threats to growth.
In its “2019 KPMG Nigeria CEO Outlook,” majority of the CEOs (76%) expect conservative top line growth of less than 2% over the next three years.
Last year, Nigeria’s economy grew by 1.93%. The Central Bank of Nigeria (CBN) has projected 3% growth in 2019.
Wole Obayomi, KPMG Nigeria’s Head of Tax, People and Regulatory Services, said:
“The country’s economy has witnessed eight consecutive quarters of year-on-year growth.
This situates the economy in the recovery phase of the economic cycle. Also, the country’s general elections were conducted earlier this year and they were deemed to be largely successful. With the return of the incumbent administration, it is expected that there will fundamentally be policy continuity. So, it is perhaps unsurprising that Nigerian CEOs are more confident in their growth expectations.
With the political risks significantly reduced, the economy will benefit from the right policy signals and direction. Some of the areas of focus would include the implementation of the minimum wage increase, the viability of our foreign reserves (which is intrinsically tied to oil price movements) and the sustainability of the fuel subsidy regime,” Obayomi added.
Industry report helps the government and businesses to identify key economic drivers and fundamental issues confronting players.
With the pace of change and the introduction of machine learning, robotics, and artificial intelligence, KPMG Nigeria suggests that CEOs need to act swiftly to meet global demands.
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