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FG Optimistic Nigeria Will Exit Recession This Year



  • FG Optimistic Nigeria Will Exit Recession This Year

The federal government on Wednesday expressed optimism that the Nigerian economy was on the path of recovery, assuring the public that the country would crawl out of recession before the end of the year.

Making this disclosure while briefing journalists at the end of the Federal Executive Council (FEC) in Abuja, the Minister of Budget and National Planning, Senator Udoma Udo Udoma, said available indices had shown that the economy was recovering faster than it was envisaged.

According to him, whereas the International Monetary Fund (IMF) had forecast a contraction in Nigeria’s gross domestic product (GDP) growth rate by 1.8 per cent in 2016, the economy contracted by 1.5 per cent last year.

He said this was highly encouraging, but admitted that the recession was not over, adding that with more efforts put into the economic recovery agenda, Nigeria would definitely exit the recession before the end of the year.

He added that the report of the National Bureau of Statistics (NBS), which indicated that the economy recorded a contraction of 1.3 per cent in the fourth quarter of 2016, was another attestation that the economy was on a recovery path.

“With regards to the NBS report, as you are aware, in the fourth quarter of 2016, the economy contracted by 1.3 per cent which was a lower degree of contraction than the previous quarter and indicative that we are already turning around and beginning to recover, even though we are still in a recession. So the overall result was better than many people projected.

“The IMF report had forecast a GDP growth rate of -1.8 per cent for 2016 but it turned out to be -1.5 per cent. So, that’s better than expected but we are not out of the woods.

“It is encouraging, but we have to do more to make sure that we get the economy out of the recession this year.

“With regards to the things we plan to do in the next three to four years, they are spelt out in details in the Economic Recovery Growth Plan (ERGP).
“It involves a number of things but the key is to make this economy competitive so that we diversify. We want to do two broad things: one is to restore oil production and harvest what we can get from that sector, but also diversify by making the economy competitive so we would grow our agriculture and manufacturing.

“We will have value added in Nigeria and move from a consuming to a producing nation. That is the thrust of the plan. We believe we have the will and determination to achieve it,” Udoma stated.

The minister said the government was determined to get the economy out of recession before the end of the year, pointing out that the 2017 budget was structured to do just that.

“That is why we are anxious to get the budget passed, so that we can begin implementation and begin to take all the steps we need to get the economy out of recession,” he added.

Udoma, who said he briefed FEC on the ERGP that was released by his ministry on Tuesday, emphasised that the federal government was looking forward to the early passage of the budget, adding that doing so would fast-track the implementation of the recovery agenda.

He said a number of the recovery initiatives had already been incorporated into the budget.

He also said signs of economic recovery had been showing and encouraged the government to concentrate on solid minerals investment and simultaneously ensure that Nigeria’s infrastructure is revamped.

He also enumerated the five planks of the ERGP to include: human capital development, macroeconomic stability, agricultural revolution and food security, improved transportation, energy sufficiency and industrial growth.

“So we are encouraged but we are even more energised to put in more efforts in agriculture which is doing very well to do even better. To put in more efforts in the solid minerals sector, to make sure that our infrastructure is revamped because that is what will stimulate our economy if we continue in this way.

“You saw yesterday that the acting president went to break grounds for the railway project from Lagos to Ibadan all the way to Kano. As you know, the economic recovery and growth plan focuses on three objectives.

“One is restoring growth and that is what we are determined to do. Two is involving our people; our people are our greatest resource, and three is building a competitive economy because ultimately, the economy cannot do well unless it is competitive.

“So we are determined with this plan to make this economy great again. We are determined to move from the negative growth that we experienced in 2016 to a growth rate of 7 per cent by 2020,” Udoma submitted.

Also briefing newsmen, the Minister of Federal Capital Territory (FCT), Mohammed Bello, said the council approved the construction of the Greater Abuja water supply project at the cost of $470 million to provide “potable water to the greater part of the city and it intends to leverage on the facility that we have in the city”.

According to Bello, the project will be funded by the China Exim Bank, and listed the phases of water supply to various parts of the FCT.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Federal Government Set to Seal $3.8bn Brass Methanol Project Deal in May 2024




The Federal Government of Nigeria is on the brink of achieving a significant milestone as it prepares to finalize the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass Methanol Project.

The agreement to be signed in May 2024 marks a pivotal step in the country’s journey toward industrialization and self-sufficiency in methanol production.

The Brass Methanol Project, located in Bayelsa State, is a flagship industrial endeavor aimed at harnessing Nigeria’s abundant natural gas resources to produce methanol, a vital chemical used in various industrial processes.

With Nigeria currently reliant on imported methanol, this project holds immense promise for reducing dependency on foreign supplies and stimulating economic growth.

Upon completion, the Brass Methanol Project is expected to have a daily production capacity of 10,000 tonnes of methanol, positioning Nigeria as a major player in the global methanol market.

Furthermore, the project is projected to create up to 15,000 jobs during its construction phase, providing a significant boost to employment opportunities in the country.

The successful execution of the GSPA is essential to ensuring uninterrupted gas supply to the Brass Methanol Project.

Key stakeholders, including the Nigerian National Petroleum Company Limited and the Nigerian Content Development & Monitoring Board, are working closely to finalize the agreement and pave the way for the project’s advancement.

Speaking on the significance of the project, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized President Bola Tinubu’s keen interest in expediting the Brass Methanol Project.

Ekpo reaffirmed the government’s commitment to facilitating the project’s success and harnessing its potential to attract foreign direct investment and drive economic development.

The Brass Methanol Project represents a major stride toward achieving Nigeria’s industrialization goals and unlocking the full potential of its natural resources.

As the country prepares to seal the deal in May 2024, anticipation grows for the transformative impact that this landmark project will have on Nigeria’s economy and industrial landscape.

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IMF Report: Nigeria’s Inflation to Dip to 26.3% in 2024, Growth Expected at 3.3%



IMF global - Investors King

Nigeria’s economic outlook for 2024 appears cautiously optimistic with projections indicating a potential decrease in the country’s inflation rate alongside moderate economic growth.

The IMF’s revised Global Economic Outlook for 2024 highlights key forecasts for Nigeria’s economic landscape and gave insights into both inflationary trends and GDP expansion.

According to the IMF report, Nigeria’s inflation rate is projected to decline to 26.3% by the end of 2024.

This projection aligns with expectations of a gradual easing of inflationary pressures within the country, although challenges such as fuel subsidy removal and exchange rate fluctuations continue to pose significant hurdles to price stability.

In tandem with the inflation forecast, the IMF also predicts a modest economic growth rate of 3.3% for Nigeria in 2024.

This growth projection reflects a cautious optimism regarding the country’s economic recovery and resilience in the face of various internal and external challenges.

Despite the ongoing efforts to stabilize the foreign exchange market and address macroeconomic imbalances, the IMF underscores the need for continued policy reforms and prudent fiscal management to sustain growth momentum.

The IMF report provides valuable insights into Nigeria’s economic trajectory, offering policymakers, investors, and stakeholders a comprehensive understanding of the country’s macroeconomic dynamics.

While the projected decline in inflation and modest growth outlook offer reasons for cautious optimism, it remains essential for Nigerian authorities to remain vigilant and proactive in addressing underlying structural vulnerabilities and promoting inclusive economic development.

As the country navigates through a challenging economic landscape, concerted efforts towards policy coordination, investment promotion, and structural reforms will be crucial in unlocking Nigeria’s full growth potential and fostering long-term prosperity.

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South Africa’s March Inflation Hits Two-Month Low Amid Economic Uncertainty



South Africa's economy - Investors King

South Africa’s inflation rate declined to a two-month low, according to data released by Statistics South Africa.

Consumer prices rose by 5.3% year-on-year, down from 5.6% in February. While this decline may initially suggest a positive trend, analysts caution against premature optimism due to various economic factors at play.

The weakening of the South African rand against the dollar, coupled with drought conditions affecting staple crops like white corn and geopolitical tensions in the Middle East leading to rising oil prices, poses significant challenges.

These factors are expected to keep inflation relatively high and stubborn in the coming months, making policymakers hesitant to adjust borrowing costs.

Lesetja Kganyago, Governor of the South African Reserve Bank, reiterated the bank’s cautious stance on inflation pressures.

Despite the recent easing, inflation has consistently remained above the midpoint of the central bank’s target range of 3-6% since May 2021. Consequently, the bank has maintained the benchmark interest rate at 8.25% for nearly a year, aiming to anchor inflation expectations.

While some traders speculate on potential interest rate hikes, forward-rate agreements indicate a low likelihood of such a move at the upcoming monetary policy committee meeting.

The yield on 10-year bonds also saw a marginal decline following the release of the inflation data.

March’s inflation decline was mainly attributed to lower prices in miscellaneous goods and services, education, health, and housing and utilities.

However, core inflation, which excludes volatile food and energy costs, remained relatively steady at 4.9%.

Overall, South Africa’s inflation trajectory underscores the delicate balance between economic recovery and inflation containment amid ongoing global uncertainties.

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