A leading financial expert has painted a bright picture for Nigeria’s economic future, forecasting a robust 3.5% growth rate by 2026 that would propel the nation’s Gross Domestic Product (GDP) to an impressive $400 billion.
Bismarck Rewane, Managing Director and CEO of Financial Derivatives Company Limited, shared this optimistic outlook at the Access Bank Customer Forum in Lagos on Thursday 19, September 2024.
“The Nigerian economy is on track to becoming the second largest in sub-Saharan Africa,” Rewane confidently asserted. He attributed this projected growth to several factors, including an increasingly efficient foreign exchange auction system and a significant boost in unencumbered foreign reserves, which are expected to reach $20 billion.
Additionally, Rewane projected a decline in inflation to 22% by 2026, coupled with a reduction in the monetary policy rate to 20%. These measures, he explained, would contribute to a decrease in bad loans across the banking sector.
While the overall outlook was positive, Rewane also cautioned that the naira might trade at N1,550 to the dollar in the parallel market. He pointed to intervention funds, diaspora remittances, and exchange rate policies as key factors influencing this potential scenario.
Rewane’s projections echo recent statements from Finance Minister Wale Edun, who highlighted a $2.35 billion net inflow into Nigeria’s foreign reserves and relative stability in the country’s currency.
Further bolstering confidence in Nigeria’s economic trajectory, Rewane predicted an increase in total factor productivity to 2.6% by 2026, alongside a growth in the trade balance to $9.3 billion.
He also offered reassurance on the fuel front, anticipating a stabilization of petrol prices at N900 per litter due to increased production from the Dangote refinery and modular refineries.
This positive economic forecast comes at a time when Nigeria is actively seeking to attract foreign investment and diversify its economy away from reliance on oil revenues. If Rewane’s predictions hold true, the country could be well on its way to achieving these goals and securing a prosperous future for its citizens.
