Sustaining Positive Economic Trajectory In Nigeria

Sustaining Positive Economic Trajectory In Nigeria Dr kenny Odugbemi

IMF forecast $8b fall in Nigeria in 2024, now our foreign reserve is now at $24bn due to the following:
✓Due to absence of Eurobond issuance

✓Repayment of existing bond and repayment of $3.5bn
✓Repartraition from oil sector causing a had dip on our forex reserves to offset account

*Government’s problems is on excessive expectations of extra ordinary result though there are good intentions but there is a significant disconnect

*Even the best intentions of the government such as
*Abrupt fuel subsidy removal without contingency plan

*Unification of forex without reasonable buffer in foreign reserve
*We are currently witnessing upsurge in forex market
N1800/$1 with minor differences between open windows and parallel markets hence we are not individually and collectively achieving our respective goals

Positive trajectory

*Government means well but they are characterized by low delivery and *Strengthening Naira.

Critical issues of concern

✓Probing N30trn ways and means by NASS

✓NASS has order the stoppage of N17trn of over 8years

✓NASS now on second reading on bill for restructuring

*Federal and State government are currently discussing the issue of establishing Community police across all Police divisions across 36States

*Continuous effort to guarantee price stability

*Limited supply of forex

*Insignificant DFI’s despite million of dollar spent across the world by Head of government

✓ Insecurity, terrorism turning into dreaded demons that require autocracy and militocracy in Kinectic mode since non Kinect approach is not yielding any significant result

Way forward

*CBN monetary policies are already yielding positive outcomes like increased capital inflow

*As of now loan foreign inflow constitute 59% of $4bn

*Government is already implementing a sound FX management policy that will deal with issues such as
*Increasing liquidity
*Curtailing and regulating demand
*Dealing with FX backlog
*Rate of convergence

Conclusion
CBN is currently implementing raft of Policies to stabilize the Naira band volatility in the market which is already yielding positive results