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| President Mohammadu Buhari |
There
was a high degree of optimism over Buhari changing Nigeria for the better by
reviving economic growth and fighting corruption and insecurity. Much has
happened over the past few years under the Buhari regime, with the nation going
through various trials and tribulations. Confidence over the health of
Nigeria’s economy was dealt a painful blow after a currency crisis threatened
to cripple the nation.
Inflation
skyrocketed to worrying levels as the Naira tumbled and economic growth slowed for
the first time in 25 years. While it could be easy to blame the APC for
Nigeria’s woes, it must be kept in mind that falling oil prices may have played
a leading role.
What
remains highly worrying is that the National Assembly has just recently passed
a record N9.2 trillion budget for 2018. Such a development could negatively
impact confidence over the nation’s political landscape, especially when
considering how this budget was the most delayed in 19 years. It is worth
noting that the 2017 budget followed a similarly disappointing pattern of
delays which could have negatively impacted economic growth. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Speaking
about economic growth, for the first time in over two decades Nigeria
experienced a recession thanks to the combination of falling oil prices,
political uncertainty and a sharply depreciating local currency. A strong
suspicion remains that Buhari’s six-month delay to select a cabinet after being
sworn in as President on 29 May 2015 weighed heavily on the nation.
His
refusal to allow the Central Bank of Nigeria to devalue the Naira when falling
oil prices were eroding the nation’s external reserves compounded to Nigeria’s
woes. When the CBN eventually de-pegged the Naira in June 2016, the local
currency depreciated so badly that the economy and citizens felt the pain. The
ripple effect ultimately created restrictions on international payments while
crippling liquidity and repelling foreign investors.
Focusing
on the macro economics, Nigeria’s unemployment rate has jumped 18.8% over the
past three years, while youth unemployment rate is currently around 33.1%.
Inflation rose to gravity-defying levels, from 9.8% in May 2015 to a 12-year
high of 18.72% in January 2017. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Although inflation has moderated, dropping to 12.5% April thanks to the CBN’s
efforts to promote FX stability, the effects can still be felt on the economy.
While
the country displayed its resilience against the global arena by staging a
rebound in 2017 thanks to higher oil prices, the latest GDP report for Q1 of
2018 disappointed, by sliding 0.16%. The truth is, Nigeria needs to implement
more fiscal and monetary measures with a strong focus on agricultural
development to boost economic growth.
Today,
the nation proudly boasts foreign exchange stability and moderating
inflationary pressures. This could be off the back of recovering oil prices.
Painful lessons from the past regarding falling oil prices should act as a
wake-up call for the nation to break away from oil reliance and diversify into
a self-sustaining economy.
The
World Bank Group has expressed satisfaction over the performance of the
Nigerian economy, while Fitch Ratings has affirmed Nigeria’s long-term foreign
currency Issuer Default Rating (IDR) at B+ with a negative outlook. With the
implementation of the new Economic Growth and Recovery Plan (EGRP) supporting
trade and capital flows, the outlook for Nigeria remains encouraging.
The
Central Bank of Nigeria has the ability to boost economic growth by cutting
interest rates. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
With inflationary pressures slowly becoming a theme of the past and economic
data improving, it becomes a matter of when, rather than if, interest rates are
cut.
President
Buhari will be seeking a second term in office in elections next year and it
will be interesting to see if he secures another historic victory. Whatever the
outcome of the election, the future remains bright for Nigeria.
Have you heard this? Many
Nigerian exporters have been defrauded of huge amount of money in the process
of exporting commodities to foreign countries. Do you know why? They were not
trained on export operations, management, documentations and the best methods
of payment in export trade. This is terrible!!! Nigerians cannot continue to
lose money to foreigners in the course of export business. Exporters, why don’t
you get a practical manual that teaches the stages of export trade from
processing and packaging of commodities to receipt of payment by the foreign
buyers. It teaches export operations, export management, export documentations
and methods of payment in export trade? It is a contemporary step-by-step guide
to export trade. It tells all the contemporary dynamics in export trade. To get
it, click on the link below:
Hmmm!!! Folks, have you ever
imagined how the financial status of your firm will be when more than 20,000
CEOs and other key decision makers of blue-chip corporations pay for your
products and services or even give you very juicy deals. The link below will
tell you more: http://www.tectono-business.com/2015/07/tectono-business-review-in-conjunction_21.html
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