What to expect from Nigeria’s economic outlook in 2020

As the new year unfolds, all eyes are on Nigeria, Africa's largest economy, to see how it will navigate the challenges and opportunities that lie ahead. Wale Olusi, Sub-Saharan Macro and Consumer Analyst at United Capital, shared insights on what to expect in 2020 during an interview on CNBC Africa. The key theme that emerged from the discussion was the need for a well-coordinated and coherent policy framework to drive economic growth and stability. Olusi highlighted the impact of global events, such as tensions in the Gulf, on Nigeria's economy and emphasized the importance of strategic planning and proactive measures. Here are the key points discussed in the interview: Global Impact on Nigeria: Olusi noted that while global events, such as tensions in the Gulf, can have an impact on Nigeria's economy, the current outlook for oil prices is positive. He mentioned that as long as production and exports remain stable, and oil prices stay high, Nigeria stands to benefit from increased oil revenue. This positive outlook also enhances investor confidence in the economy, particularly for a nation highly dependent on oil exports. Review of 2019 and Strategic Planning for 2020: Looking back at 2019, Olusi highlighted the uncertainty surrounding the presidential election and the subsequent policy announcements that shaped the economic landscape. He emphasized the need for a strategic and coordinated approach in 2020, focusing on key areas such as GDP growth, inflation, equities, and monetary policy. Olusi stressed the importance of aligning fiscal and monetary policies to achieve long-term economic objectives and address issues like unemployment and foreign direct investment. Trade and AFCFTA Implementation: Olusi discussed the significance of the African Continental Free Trade Area (AFCFTA) and the need for Nigeria to address border and trade-related challenges. He pointed out that Nigeria, as one of the largest economies in Africa, plays a crucial role in the success of the AFCFTA. However, issues such as border closures and xenophobic incidents in South Africa could pose obstacles to seamless trade integration. Olusi called for increased collaboration among African nations to maximize the benefits of the trade agreement and enhance regional economic growth. Currency Outlook and Reserve Management: Addressing concerns about the Nigerian currency, Olusi explained that while immediate devaluation is not expected, a harmonization of exchange rates could occur in the medium term. He highlighted the importance of maintaining foreign exchange reserves and the role of the Central Bank of Nigeria (CBN) in stabilizing the currency. Olusi pointed out that external factors, such as oil prices and geopolitical events, could influence the currency's value in the future. In conclusion, Olusi underscored the need for proactive policy measures, strategic planning, and cohesive efforts across various sectors to drive Nigeria's economic growth and stability in 2020. With a focus on enhancing trade relations, managing currency fluctuations, and promoting investor confidence, Nigeria has the potential to overcome challenges and capitalize on opportunities in the year ahead.