Nigeria’s economic experts are optimistic about the country’s economic growth prospects, ruling out the possibility of a recession. According to Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company Limited, the economy is showing signs of stability, with seven out of 12 key variables trending positively.
- Rewane identified several factors driving Nigeria’s economic growth, including:
– Monetary Policy Committee’s decisions: Recent moves by the MPC have contributed to the economy’s stability.
– Inflation decline: Inflation has dropped to 24%, indicating a positive trend.
– Reduced money supply growth: This decrease has helped stabilize the economy.
– Naira value correction: Despite fluctuations, the naira’s value is trending towards stability.
However, Rewane warned that higher tax collections and levies are reducing disposable income, which could impact consumer spending power. He also noted that businesses nationwide have experienced a 15% decline in sales, with the northern region facing a steeper drop due to widespread poverty.
Despite these challenges, the experts are optimistic about Nigeria’s economic growth prospects, citing:
- – GDP projections: Projections indicate a GDP range of $228bn to $300bn, with potential growth to $400-$500bn post-rebasing.
- – Total factor productivity: This metric, previously negative for over a decade, is now positive, reinforcing growth prospects.
Other experts, including Dr. Biodun Adedipe, Founder of B. Adedipe & Associates, echoed Rewane’s sentiments. Adedipe emphasized the importance of addressing underperformance in certain sectors to unlock Nigeria’s full economic potential.
The experts also highlighted the crucial role of youth in driving Nigeria’s economic growth. According to Opeyemi Agbaje, CEO of RTC Advisory Services Limited, the youth population can be a significant driver of economic growth if properly harnessed.
In conclusion, Nigeria’s economic growth prospects are bright, with experts ruling out the possibility of a recession. While challenges remain, the country’s economic stability, inflation decline, and reduced money supply growth are all positive indicators. Addressing underperformance in certain sectors and harnessing the potential of the youth population will be crucial in unlocking Nigeria’s full economic potential.