The official data of macroeconomic indicators like the Gross Domestic Product (GDP), inflation, exchange rate, external reserves and oil prices point to a strong 2022, but the average Nigerian is still perplexed, Bismarck Rewane, Chief Operating Officer (COO) of the Financial Derivative Company (FDC) Limited said.
For instance, the prices of domestic commodities are high and will climb further once fuel subsidy is removed and cost reflective electricity tariffs are implemented. Meanwhile, income levels are the same.
In 2021, the promise was for hope. Many were elated at the expectations of a better year with less travel restrictions, reduced COVID-19 cases, a more proactive and accountable government and better living standards.
“Although this was not the case 100 per cent with the ups, downs and bumps along the road, we admit that the roller-coaster ride of 2021 was better than the merry-go-round of 2020.
“While some are grateful with their arms wide open and hearts expectant for a better 2022, others are keeping their fingers crossed considering the bittersweet experiences 2021 had to offer”, said Rewane.
The first half of 2022 will be characterized by aggressive reforms and the government embarking on ambitious infrastructure projects to garner the trust of the public as elections approach. The second half of 2022 will be all about politics. Political campaigns will commence and this time around the dynamics might change due to the e-voting system. But the impact is likely to be the same. Money supply could increase further stoking inflationary pressures, reforms will slow down and political tensions could rise.
At the moment, many are sunk in hope for a better year. The best case scenario would be less covid cases, no new variants, higher oil price and production levels and a seamless transition into the election year.