State of economy: Policy reforms inevitable, options limited – Rewane

Policy reforms have become inevitable following predicted political unrest stemming from high-tensioned elections.

Bismarck Rewane, Chief Executive Officer (CEO) of Financial Derivatives Company (FDC) Lmited is worried that, unless there are reforms, it might the case of ” tepid growth, limited fiscal headroom, a misaligned currency, spiralling inflation, and macroeconomic imbalances”.

He summed it up with another warning that, “the nation now has limited options”

He said, all this may lead to a further decline in growth to 1.35 per cent in 2023, with a contraction of a three per cent in Q1’23.

“Nigeria is now on a precipice and appears to have hit a brick wall. Policy reforms have become inevitable”, he said.

In the latest edition of the FDC publication edition of the economic outlook, the FDC Think Tank shares its 2023 outlook for the world, SSA and Nigeria.

The publication said, in 2023, at least six Organization for Economic Corporation and Development (OECD) countries and three Sub Saharan African (SSA) countries will hold pivotal elections. Nigeria, the giant of Africa, the world’s sixth-largest producer of crude oil and the ninth largest holder of proven gas reserves, is one of them. The country’s election is in four days!

Elections aside, the war in Ukraine is now going into overdrive, and COVID is almost behind us. What kind of economic horizon are we looking at in 2023? And how do we thrive in a world of chaos, uncertainty, and unknown unknowns? These are some of the macroeconomic questions that make us refer to 2023 as the year of imponderables and uncertainties.

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