Achieving good results in Nigeria simply requires following sound policy and effective implementation. It’s not as difficult as rocket science!
By Abayomi Odunowo.
In a groundbreaking shift, Mexico has surpassed China as the largest exporter to the United States for the first time in two decades. With an impressive export number of $475.6 billion, Mexico has solidified its position as a key player in the global trade market. This accomplishment is a result of Mexico’s growing economy, attracting foreign direct investment (FDI) of $32.9 billion and receiving $56 billion in remittances from Mexicans abroad in the first nine months of 2023.
The surge in exports from Mexico is a testament to the country’s economic growth and development. Over the past few years, Mexico has worked to improve its trade relations with the United States and other countries, leading to an increase in exports across various industries. This increase in exports has not only boosted Mexico’s economy but has also helped to create jobs and stimulate economic growth in the country.
Mexico’s success in attracting FDI is another key factor in its rise as the top exporter to the United States. With $32.9 billion in FDI, Mexico has been able to attract foreign companies and investors looking to capitalize on the country’s growing economy. This influx of investment has helped to fuel Mexico’s export market and has led to increased production and competitiveness in the global market.
Remittances from Mexicans abroad have also played a significant role in Mexico’s economic growth. With $56 billion in remittances, Mexicans living and working abroad have been able to support their families and contribute to the country’s economy. These remittances have helped to boost consumer spending and investment in Mexico, further driving economic growth and development.
As a result of Mexico’s strong export performance, the Mexican peso has soared in value, rising 20% against the US dollar in the last two years. This increase in the value of the peso is a reflection of Mexico’s growing economy and its ability to compete in the global market. A strong currency makes Mexican exports more competitive on the global stage, further driving economic growth and development in the country.
While some may see Mexico’s rise as the largest exporter to the United States as a competition or threat, economics does not operate on the basis of patriotism. Instead, it is driven by policy and productivity. Mexico’s success in exporting goods to the United States is a result of its economic policies, investments, and hard work. This accomplishment should be celebrated as a sign of Mexico’s economic growth and development.
In order to achieve greater economic growth and success in Nigeria, it is imperative that each of the 36 states in the country set ambitious targets for exports, foreign direct investment (FDI), and foreign remittances. With these targets in place, Nigeria can make significant strides in global trade and economic prosperity.
To start with, each state should aim to generate between $30-$40 billion in exports annually. This will not only boost the local economy but also contribute to Nigeria’s overall GDP. By diversifying the products and services that are being exported, states can tap into new markets and increase their international competitiveness.
In addition to exports, attracting FDI is crucial for economic growth. Each state should set a minimum target of $10 billion in FDI annually. This will not only bring in much-needed capital and resources but also create job opportunities and spur innovation in local industries. By offering incentives and creating a business-friendly environment, states can attract more foreign investors and drive economic development.
Furthermore, foreign remittances play a significant role in Nigeria’s economy. Each state should aim to receive $10 billion in foreign remittances annually. This money sent by Nigerians living abroad can be used to support local businesses, boost consumption, and improve the standard of living for residents. By encouraging diaspora engagement and facilitating easy remittance transfers, states can maximize this source of income and strengthen their economic resilience.
By setting and achieving these ambitious targets, Nigeria as a whole can soar high in global trade and economic success. Increased exports will boost the country’s trade balance and reduce dependence on imports, while attracting FDI will drive investment in key sectors and promote sustainable growth. Additionally, foreign remittances will provide a steady source of income that can fuel domestic consumption and investment.
it is crucial for each of Nigeria’s 36 states to target between $30-$40 billion in exports, $10 billion in FDI, and $10 billion in foreign remittances annually. By working towards these goals, Nigeria can unlock its full economic potential and emerge as a leading player in the global economy. With determination and strategic planning, the country can achieve greater results and secure a prosperous future for its citizens.
Mexico’s surpassing of China as the largest exporter to the United States is a significant achievement that reflects the country’s growing economy and competitiveness in the global market. With strong export numbers, FDI, and remittances, Mexico has been able to drive economic growth and development, leading to a surge in the value of the peso. This accomplishment should be seen as a testament to Mexico’s hard work and dedication to economic success, rather than a source of competition with other countries. As Mexico continues to grow and develop, its position as a key player in global trade is likely to strengthen, further benefiting its economy and people.
Media Contacts
Otunba Abdulfalil Abayomi Odunowo
National Chairman AATSG
URL: www.aatsg.org.ng
Tel: +2349053535322
Email: [email protected]
