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CBN allays Nigerians fear on economic situation, growth

By News Desk

The Central Bank of Nigeria (CBN) has allayed Nigerians fear over the nation’s economic outlook, assuring that there were positive sides to Nigeria’s economic growth, despite uncertainties in the domestic and global economy.

It explained that if policy challenges with exchange rates, insecurity, among others, were addressed effectively, the country would start seeing some positive projections into 2021 and the beginning of 2022.

The CBN Director, Monetary Policy Department, Dr Hassan Mahmud, who gave the assurance said added that if the apex bank’s forecasts for GDP growth are sustained and there was improved vaccination and the health hazards and lockdowns are not resurfacing, the county would see GDP getting close to three per cent by the end of 2021.

Mahmud said this at the Mid-year Economic Review and Outlook 2021, organised by the CIBN Centre for Financial Studies, in collaboration with B. Adedipe Associates, on Friday in Lagos.

“We will also see the inflation number coming down less than 13 per cent by the end of the year and further down to the NBS projection of single digit by 2022 or the middle of 2022. We will start seeing a downward trend in inflation numbers particularly, headline inflation,” he said.

Mahmud added that food inflation should also go down substantially if the supply side of it was addressed and security issues abated.

He said that inflows should also improve substantially over the rest of the year given that market confidences were already building, particularly, in the financial sector.

On his part, the Chief Consultant of BAA Consult, Dr Biodun Adedipe, said that if the oil sector was positive in terms of prices and production volume and export volume, it would go a long way in driving growth.

“At BAA, our projections for Nigeria economic growth for 2021 had remained 2.54 per cent since February and we have maintained it so.

“If the prognosis, the oil sector in Nigeria is positive in terms of price, production volume and export volume, that goes a long way in driving growth and changing some of what we see as headwinds and risks,” he said.

Earlier, the CIBN President, Dr Bayo Olugbemi, said that the event was the brainchild of the CIBN Research Committee.

He said it was aimed at providing insights for business leaders and key decision makers, who had responsibility to deliver on specific mandates irrespective of the prevailing uncertainties and disruptions in the Nigerian economy.

“There is a strong need for further guidance to help individuals and businesses make informed and strategic decisions that will help them weather the storm,” Olugbemi said.

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