Nigerian economy expected to keep rising this year - CNBC Africa

Nigerian economy expected to keep rising this year

Western Africa

by Dara Rhodes 0

Projections for 2013 propose significant growth. Photo: Getty images

In the year 2013, Nigeria saw a real GDP growth of 6.8 per cent higher than global and regional averages and growth in the third quarter were higher than the forecasts at the beginning of the year.

“Basically, the economy recovered from the after effects of the flood and the strike on subsidy from 2012. So we expect that to continue into Q4 and we expect that momentum to thrive in 2014,” Bismarck Rewane, CEO of Financial Derivatives Company told CNBC Africa.

Despite the strong growth figures the country sees year in, year out, development across the nation is still very stunted. While experts believe that this could be a result of lack of proper direction of policy within the fiscal authorities as the budget focuses more on maintaining the government than building infrastructures.

Ayo Teriba, CEO of Economic Associates told CNBC Africa, “Growth is what you can look for in the immediate term, development is not an immediate issue, and it takes time for growth to translate to development. Our concern should be that growth is steady.”

According to Teriba, the key target in 2014 should be to maintain the growth acceleration that started in 2013 and support it with fiscal and monetary policies.

With the monetary policy meeting (MPC) coming up on the 20th and 21st of this month and with a new central bank governor expected to take office in June, some analysts believe that there will be no change in the monetary environment till then.

“You are likely to see status quo or a contraction in view of the fact that the pressure on the currency continues to intensify, the reserves are below 44 billion, I think 42.2, 42.3 so, in order to preserve the currency value, externally, there might need to be some contractions internally,” said Rewane.