Nigerian govt projects 4.2% GDP growth for 2022

The federal government has projected a rise to 4.2 percent of the country’s Gross Domestic Product (GDP) in 2022.

The Minister of Finance, Budget, and National Planning, Zainab Ahmed, made this projection at the Public Consultation on the Draft 2022 to 2024 Medium Term Fiscal Framework and Fiscal Strategy Paper (MTFF/FSP) on Thursday.

Mrs. Ahmed also expects the 2021 GDP rate to close at 2.5 percent.

“In 2022, we are expecting an uptake to 4.2 percent, then a dip to 2.3 percent in 2023 and up to 3.3 percent in 2024.”

Read also: Despite two quarters of GDP growth, 47.8% of Nigeria’s economy still in recession

The minister further said the Nominal GDP projected for 2022 was N184.38 trillion up from N168.6 trillion in 2021, and then to N201 trillion in 2023 and N222 trillion in 2024.

She also said the inflation rate was expected to drop slightly to 13 percent in 2022 from 15 percent in 2021.

She noted that the increase in inflation was due to the exchange rate.

“Inflation rate, which was planned for 11.95 percent in 2021, has been reflected in reality because the exchange rate is high. The average we have so far is 15 percent.

“We are expecting 2022 to go down slightly to 13 percent, then 11 percent in 2023 and 10 percent in 2024.”

She, however, said the federal government had put the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) rate of N410.15 to one US dollar for 2022 to 2024.

“The exchange rate of the Naira to the dollar, which was N379 in the 2021 budget, has been adjusted to the NAFEX rate of N410.15 to one US dollar.

“We are assuming, for now, the same rate for 2022, 2023, and 2024.”

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