Nigeria’s President Muhammadu Buhari is set to present Africa’s largest economy’s much awaited 2016 budget of N6.07 trillion (about $ 30 billion) at 10am WAT Tuesday, 22 December 2015.
With the Naira sitting at 0.0050 USD the question on everyone’s lips is how Tuesday’s budget speech will affect the economy and the country’s currency.
As far as the Nigerian naira is concerned Investec Africa Securities Economist Chris Becker is convinced that it will continue to weaken in the black market and that will impact negatively on the growth of the economy.
“I’m expecting an expansion in fiscal policy and I foresee an increase to the budget. I think that the money will be broadly spent but we will just have to wait and see tomorrow,” says Becker
There is no telling how the budget speech will go but everyone is hoping for a positive outcome though it seems highly unlikely.
Bismarck Rewane, CEO of Lagos- based consultancy Financial Derivatives is convinced that there will be no surprises when it comes to the budget speech tomorrow but possibly a few amendments.