FG Projects 3.01% Economic Growth Against IMF 2%

• FG Projects 3.01% Economic Growth Against IMF 2%

The Federal Government (FG) has predicted a more upbeat economic growth for Nigeria in 2019 despite the International Monetary Fund (IMF) saying otherwise.

Speaking at the Deloitte Dialogue on Nigeria’s Economic Outlook for 2019, in Lagos, the Minister of Budget and National Planning, Senator Udo Udoma said the nation’s economy will grow at 3.01 per cent in 2019. A 1.01 per cent higher than the 2 per cent predicted by the IMF.

However, the IMF had earlier in January, in its World Economic Outlook Update, said the Nigerian economy would grow more slowly than previously predicted.

The fund, estimated a 2 per cent growth, from the previously estimated 2.3 per cent projected in October 2018 against the backdrop of the recent drop in global crude oil prices.

Senator Udoma, speaking on this, said the proposed 2019 budget was intended to reposition Nigeria’s economy on the path of inclusive diversified, faster and sustainable growth.

According to Senator Udoma, with the improved coordination of fiscal and monetary policies, exchange rate stability, improved oil export earnings and capital inflows, as well as the continuation of the current prudent management of foreign exchange reserves by the Central Bank of Nigeria, inflation rate is expected to drop to 9.98 percent in 2019 from the previous 11.44 percent of December 2018.

“Government is committed to growing the economy, and accordingly the 2019 Budget Proposal has been designed to continue to provide the stimulus and support required to spur growth in the economy,” he said.

While speaking on the basis for the oil price projections in the budget, Senator Udoma stated that it was the supply-side factors that had been mainly responsible for the price increase in 2018 and the recent decline.

Again, he said oil prices are determined by the forces of demand and supply of oil in international markets.

“The ERGP oil production target for 2019 is 2.4mbpd, and the NNPC production submission is 2.45mbpd. We have revised the ERGP target and NNPC forecast downwards to 2.3mbpd for the 2019 budget proposal,” he added.