Norrenberger Vroup, a financial services company has projected that as efforts by both monetary and fiscal authorities strengthen, Nigeria’s inflation is expected to drop by the end of 2024.... CLICK TO READ THE FULL NEWS HERE▶▶
In addition, it projected a 3.1% GDP growth rate in its Norrenberger Economic Outlook (NEO), titled “Nigeria: Beyond the Reforms.”
According to Pabina Yinkere, Business Head of Norrenberger Assets Management, who presented the report, the country’s inflation problem is still very real.
Inferring from the report, Yinkere stated that the main causes of inflation are COVID-19, the conflict between Russia and Ukraine, a lack of infrastructure, high energy costs, unequal purchasing power, and the elimination of fuel subsidies.
“Subsequently, we have projected that inflation will moderate at 32.26 per cent at the end of the year while GDP growth is projected to moderate at 3.1 per cent.”
Additionally, the company projected that in the worst event, the exchange rate will be N2,000 to $1, and in the best situation, N1,100 to $1.
The worst-case scenario, it stated, will be facilitated by rising global tensions, additional electricity tariff increases, a decline in crude oil production below 1.2 million barrels per day, and Dovish CBN policy, according to the report.
The best-case scenario, however, will be facilitated if oil production exceeds 1.5 million barrels per day and Dangote Refinery fully operates, as this will increase supply and improve economic activity.
The report also pointed out that the people who contributed the most to the economy were also the most negatively impacted by rising interest rates and unstable currency rates.
Tony Edeh, CEO of Norrenberger, stated that the forecast was combined with a panel discussion of seasoned financial specialists to exchange viewpoints and discuss current issues in order to offer specific suggestions for economic development and progress.
