Standard Chartered Bank has projected that the current Nigeria’s economic reform initiatives are anticipated to play a pivotal role in revitalizing Nigeria’s credit landscape by the year 2024.
The Standard Chartered Regional Head of Financial Markets, Mark Price stated this in the Bank’s Global Market Outlook 2024 report, according to Nairametrics.
Price noted that the reform agenda in Nigeria will bolster macroeconomic stability and tap into the nation’s substantial investment opportunities.
“In Nigeria, an ambitious reform agenda is expected to support macro stabilization and unlock the country’s significant investment potential. foreign exchange (forex) reforms, cash reforms, and other economic reforms being undertaken by the present Government in Nigeria could help attract capital inflows and gradually address fprex liquidity challenges. These reforms are expected to support a turnaround in Nigeria’s credit story in 2024,” he said.
Price noted that the African Continental Free Trade Area (AfCFTA) agreement was set to create the largest free trade area in the world when measured by the number of countries participating.
The pact according to him connects 1.3 billion people across 55 countries with a combined GDP of $3.4 trillion.
Price said that headline Consumer Price Index inflation is expected to decelerate in 2024 in most key economies.
He said base effects, recently receding energy price inflation, and the lagged effects of policy tightening will help to slow price pressures.
“Oil prices are a key source of upside inflation risk. Analysts expect the average Brent crude oil price to fall to $81/b in December 2024 and fall below $80/b in 2nd Half of 2025 due to expected inventory builds in 2025. However, recent activity in the Red Sea causing further tension in the Middle East could see a near-term upside to the risk premium. Despite expectations of slightly softer global growth in 2024, support for oil is still considerable,” he said.