By Chinwendu Obienyi
Nigeria’s economy could be in for a blend of optimism and uncertainty in 2022 due to a number of positive and negative sentiments observed so far, which may influence the macroeconomic landscape.
This was the view of economic experts during the 4th edition of the Coronation Merchant Bank’s Interactive Session Series themed Nigeria’s Economic Landscape – a blend of optimism and uncertainty.
Speaking during the virtual event, the Managing Director/Chief Executive Officer of Coronation Merchant Bank, Banjo Adegbohungbe, said there are a number of factors, both positive and negative that are expected to influence the macroeconomic landscape in 2022 while adding that lessons learnt on resilience as Nigeria embarked on a recovery path in 2021 will be critical in shaping the business and macroeconomic environment this year.
In her macroeconomic presentation, Chief Economist at Coronation Merchant Bank, Chinwe Egwim, said Nigeria’s economy has posted GDP expansion for four quarters since its last recession recorded in 2020. According to her, the current growth rate levels are unable to halt the steady decline in incomes and the rise in poverty.
“This year, we expect some fiscal stimulus on the back of the FGN’s capital expenses. Furthermore, we anticipate investment spending in targeted sectors. Looking ahead, overall pre-election expenditure towards the 2023 general elections should also contribute to the growth drive. For 2022, we expect a GDP growth of 2.6 per cent year-on-year (y/y). Looking ahead, on the back of specific factors we expect upward pressure on prices. Overall, consumption patterns are relatively better and are almost mirroring pre-pandemic levels. However, we must note that consumer pockets are still steadily being rebuilt.”, Egwim said.
Also giving his economic prediction for the year, Partner & Chief Economist, PwC Nigeria, Andrew Nevin expressed his optimism for 2022, stating that there is a bigger economy and more economic activities.
Also speaking on the economic landscape, an economic expert, Biodun Adedipe said, “We have seen the pattern in the last 10 years of non-oil sectors accounting for between 77 and 82 per cent in terms of contribution to our GDP, while the oil sector has repeatedly accounted for less than 10 per cent. It is now obvious that what drives the economy is the non-oil sector and that is where we will have to pay a lot of attention.