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IMF expects Nigeria’s economy to meet 2024 grow target with stronger reforms

Published

4 months ago

August 29, 2024

The International Monetary Fund (IMF) says stronger reforms are needed for Nigeria to reach its goal of 3.1% economic growth in 2024.

The IMF’s Resident Representative, Dr Christian Ebeke, said this at the “Invest Nigeria” themed International Business Conference and Expo 2024 held by the Lagos Chamber of Commerce and Industry (LCCI) on Tuesday in Lagos.

Ebeke said that the country needed more changes to its laws and rules about running a business to grow a little faster than the 2.9% rate seen in 2023.

He said that these kinds of measures would change the country’s growth rate into something more stable. But he did say that the country had made progress in its loan market, as well as in its financial and international areas.

“Insecurity, tight financial conditions, multiple taxes, insufficient power and corruption are foremost constraints identified by businesses.

“What comforts the IMF is that the Nigerian government can address these issues, and they are currently being addressed through reforms by the Federal Government.

“And we are encouraged by the fact that these issues can be reversed,” he said.

He said that Nigeria should close the structural gaps like India does by removing 25% of the problems with government and company rules.

In the next three years, the Gross Domestic Product (GDP) could grow by 6.4% if that is done, according to him.

Adegboyega Oyetola, who is the Minister of Marine and Blue Economy, said that Nigeria’s location and wealth of resources made it a great place to invest, especially in the marine and blue economy fields. Even though there were problems, Oyetola said that the government was committed to making the right conditions for economic growth so that big capital would come in.

He talked about some of the ways the government is trying to get people to invest in the marine and blue economy sector. For example, businesses that operate in free trade zones don’t have to pay taxes, and they get help with building infrastructure.

He said that the government had given the marine sector new ways to sell through the African Continental Free Trade Area’s Guided Trade Initiative (GTI) and the Cabotage Vessel Financing Fund (CVFF), among other things.

“Our commitment to the marine and blue economy is demonstrated through ongoing port rehabilitation and modernisation projects. To boost investment, the Nigerian government has introduced a wide range of incentives, including tax reliefs, trade zone benefits, infrastructure development, and financial support. I encourage the business community and investors to take advantage of such incentives to contribute to Nigeria’s economic development and be part of Africa’s promising future,” he said.

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Moroccan annual inflation rises to 0.8% in November

Published

5 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

6 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”