Muyiwa Oni, West Africa Regional Head of Equity Research, Stanbic IBTC Bank Group, while speaking on the topic : Nigeria’s Economic Trajectory: Pin Pointing Opportunities for Business’ saying it resonates with every entrepreneur at the Nigeria South Africa Chamber of Commerce Breakfast Meeting, sponsored by Stanbic IBTC Bank .
He noted that the ongoing reforms of the economy by the Central Bank of Nigeria may yield less results “Because implementation may be slow as a result of the 2023 general elections which is the current preoccupation of most policy makers,” he stated.
He added that Nigeria’s currency, Naira, will further depreciate while the Gross Domestic Product, GDP will further grow by almost three percent. He said that the financial institution forecasts that Naira’s value will drop as the year progresses.
He stated: “We predict that the currency, on the official market, will be around N440 per dollar. Our view is that as long as we don’t see formal reforms in the foreign exchange market, the shortage will persist.”
While noting that due to unfavourable business environments, several investors have resolved to take their money out of the Nigerian economy, Oni also said inflation will average around 15 per cent, adding that the country’s Gross Domestic Product (GDP) will grow by 2.9 per cent.
His words: “Last year, we saw a GDP growth of 3.4 per cent, which is still recovering from the contraction in 2020. Even with this, some people argue that the economy is not still operating at the 2019 level yet, and our view for 2022 is that we will see further economic growth which we estimate at 2.9 per cent in GDP.
“Our expectation is that the non-oil sectors will continue to drive it. We have seen strong growth in the ICT sector, trade, real estate, construction, and manufacturing as well,” he added.
Commenting on the macro-economic environment, he said that businesses in Nigeria face enormous challenges even though they are the main contributors to the country’s economy.
His words: “Enterprises play a significant role in most economies and Nigeria is no exception. These enterprises are essential contributors to job creation and economic development in Nigeria.
SMEs contribute over 48% in national GDP and account for about 96% of businesses, which in turn create about 84% of employment in 36 States across the country.
However, despite the substantial contribution of SMEs to Nigeria’s economy, challenges still abound, such that the growth and development of different sectors face impediments.”
In another development, The Consul General of the Republic of South Africa Consulate in Nigeria, Dr. Bobby Moroe has assured that the consulate is developing a new model for ease of visa for Nigerians who intend to travel to South Africa.
The Consul General who made this disclosure at the September 2022 session of the monthly Nigeria South Africa Chamber of Commerce breakfast meeting in Lagos added that the “Consulate has to be intentional to create fertile ground for soft landing in obtaining South Africa visa.”
However, this clarification came against the back drop of complaints by most Nigerians to the effect that for quite some time, obtaining a South African visa has become increasingly difficult for Nigerians and the processes involved could be metaphorically likened to a camel passing through the eye of a needle.
But Moroe who sees it differently noted that the two countries must take charge and control of the narratives between both countries adding that the need to consolidate on existing relationship should be more engaging instead of fixating on isolated cases that can be managed through constructive dialogue.
“We should convert negative narratives to inspiring and beautiful stories to inspire investment and younger generations,” Moroe advised.
Finally, Osayaba Giwa -Osagie, (SAN) Chairman of the Chamber , applauded the theme of the meeting ‘Nigeria’s Economic Trajectory: Pin Pointing Opportunities for Business saying it resonates with every entrepreneur.
Giwa Osagie explained that Nigerian economy portends lots of opportunities urging entrepreneurs to maximize and tap into available channels to grow their businesses.
Add Comment