Nigeria's GDP To Grow At 2.2% in 2020 - Bismarck Rewane

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Thursday, January 16, 2019 / 7:08 PM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV

 

Nigeria's Gross Domestic Product (GDP) will grow between 2 and 2.2% in the year 2020, says Economist Bismark Rewane. The CEO of Financial Derivatives Company Limited (FDC) disclosed this as the keynote speaker at the January 2020 Breakfast meeting of the Nigeria British Chamber of Commerce, which reviewed the Nigerian economic outlook for the year 2020.

 

Rewane said GDP growth rate would remain well below the levels needed to boost job creation and improve living standards.

 

The member of the Presidential Economic Advisory Council (EAC) said the Federal Government would need to present a supplementary budget to fund the country's widening revenue gap.

 

Speaking further, he informed stakeholders that the multiple exchange rate regime would persist in the year, with inflation to average out at 11.5%  in the year.

 

On monetary policy, Rewane said interest rates would rise in Q2, 2020, to curb rising inflation and stem capital flight.

 

He believed that time lag between policies and impact would shorten while the policy environment will be more austere and responsive.

 

According to him, patriotic rhetoric and political sound bites will give way to pragmatic solutions.

 

Rewane identified the following as economic game-changers to watch in the year;


  • Cost reflective electricity tariffs/embedded power solutions (To take effect in April 2020, Magodo GRA is an experimental model in embedded power)

  • Lagos-Ibadan railway project (To be commissioned May 1st, 2020)

  • Deep Seaport In Lekki, Along the axis of the Lagos Free Trade Zone

  • Commissioning of 4 New Airport Terminals

  • Restoration of Electronic Toll gates on Key Highways in Nigeria(e.g. Lekki-Ikoyi link bridge)

  • Cashless Policy and Payment Service Bank licensing (Which will go a long way in deepening financial inclusion)

 

He listed Trade, Food and Beverage & Agriculture as key sectors to watch in the year 2020 in terms of economic activities.


Rewane called on policymakers to avoid doing the wrong and dumb things that can hurt the socio-economic space.

 

In her remarks at the breakfast meeting the Deputy British High Commissioner to Nigeria, Ms. Harriet Thompson believed 2020 provided an opportunity to deepen the Nigeria-UK investment partnership,

 

She said that a UK-Africa investment summit would take place next week in London; the United Kingdom will provide an opportunity for African political and business leaders to interact with British investors.

 

The Deputy President of the NBCC, Mrs. Bisi Adeyemi, described the January 2020 breakfast meeting as a strategic event that was well attended by stakeholders and was optimistic that Nigerian-UK trade relations would witness significant improvement in the year.

 

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