IMF expects Nigeria's economy to grow 2.6% in 2021

The International Monetary Fund (IMF) recently released its World Economic Outlook report, projecting a 3.7% growth rate for sub-Saharan Africa in 2021 and 3.8% in 2022. While there was a slight downward revision of global economic projections by 0.1%, the IMF expects Nigeria's economy to grow by 2.6% this year. Tilewa Adebajo, CEO of CFG Advisory, joined CNBC Africa to discuss the implications of this report. Adebajo expressed optimism, suggesting that Nigeria may exceed the IMF's growth projection and reach over 3% by the end of the year. He highlighted the progress in combating inflation and the country's recovery from the pandemic-induced downturn. Adebajo acknowledged challenges such as food price inflation and currency exchange rate depreciation but remained confident in Nigeria's economic trajectory. Looking ahead to 2022, Adebajo underscored the importance of structural reforms amid the upcoming pre-election year. He emphasized the need for fiscal reforms to lay a foundation for sustainable economic recovery. Adebajo also addressed potential labor strikes due to inflationary pressures and the government's fiscal constraints. He noted the delicate balance the government faces in managing subsidies and revenue challenges while avoiding disruptions in the run-up to the elections. As Africa navigates the African Continental Free Trade Area, Adebajo highlighted the significance of intra-African trade for regional growth. While the IMF projects a 3.8% growth rate for the region, Adebajo expressed concerns about Africa's growth falling below global standards. He stressed the importance of structural reforms to spur growth and development across the continent. Lastly, Adebajo raised concerns about Nigeria's vaccine preparedness for potential COVID-19 waves. He criticized the country's reliance on aid for vaccines, urging proactive measures to secure vaccinations and strengthen health infrastructure. Adebajo emphasized the need for Africa to accelerate its vaccination efforts to facilitate post-COVID economic recovery. In conclusion, Adebajo's insights underscore the challenges and opportunities facing Nigeria's economy in the context of global economic trends and the ongoing pandemic.