The Central Bank of Nigeria (CBN) has brushed off an alarm raised by governors that the economy would plung into recession anytime mid 2020.
The Chairman of the Nigeria Governors’ Forum (NGF), Abdulaziz Yari had during a three-day retreat for returning governors and governors-elect in Abuja on Monday urged the incoming governors to brace for another round of recession.
But the CBN argues that the economy was doing well and will do better before the end of the year.
Speaking at the public presentation of the Spring 2019 edition of Regional Economic Outlook (REO) by the International Monetary Fund (IMF) in Abuja on Tuesday, CBN governor, Godwin Emefiele, represented by the Deputy Governor, Economic Policy, Dr. Joseph Nnanna, dismissed the claims.
He said, “We are making smooth progress towards growth and by end of 2019, all things being equal, we are going to likely have between 2.8 per cent and three per cent GDP (Gross Domestic Product) growth rate,” he said.
He explained that since the third quarter of 2016, when Nigeria started coming out of recession, the CBN had embarked on tight monetary policy in all its ramifications.
“Right now, we are on the path of achieving our price stability goal of single-digit inflation. Are we going to witness increased inflation or are we sliding back into recession? My answer is no. But is that adequate? My answer is no. Three per cent GDP real growth rate is not enough for Nigeria where our population growth rate is 3.2 per cent. Per capita growth rate is still negative but definitely, we are not going through the era of 2016 when we had a recession. That won’t happen – hopefully. Not under CBN watch.”
Speaking earlier, the Director, African Department at IMF, Mr. Abebe Selassie, urged the Nigerian government “to keep inflation down and also grow the non-oil revenue, if the economy must perform optimally. The IMF chief said that its projected 2.1 per cent growth for the Nigerian economy in 2019, “doesn’t reflect the potentials of Nigeria”.
“Nigeria needs to maximise its potentials and grow its non-oil revenue. Non-oil revenue is too small, about four per cent to GDP, thus it’s important for government to generate more resources to meet infrastructural deficit,’’ he said.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
SPECIAL REPORT: Illegal miners degrade Ekiti community, engage in child labour
The activities of illegal miners in a community in Ekiti State have caused degradation of the environment, as miners engage...
SPECIAL REPORT: Inside the illegal trading of forest woods in Cross River community
“With a N20,000 bribe, an external buyer can influence the youth in host communities , Cross River State, to cut...
SPECIAL REPORT: Enugu govt watches as waste takes over state, threatens public health, environment
In this report, Arinze Chijioke looks at how delays in evacuation of waste in Enugu State encourages indiscriminate waste disposal, its health implications, and how...
INVESTIGATION: NDDC awards N1bn road contract to poultry farm
The Niger Delta Development Commission (NDDC) in what appears a breach of procurement laws, awarded a contract worth N1.028 billion...
FEATURE… Hard job, low income: Agony of Nigerian commercial drivers
Amid increase in fuel price over the years, coupled with bad roads and insecurity in Nigeria, many commercial drivers have...