Nigeria’s GDP to record improved growth by 2026 – Wale Edun
Mr Wale Edu, the Minister of Finance and Coordinating Minister of the Economy, has expressed optimism that Nigeria’s Gross Domestic Product (GDP) will record an improved performance by 2026.
Edun said this at the Access Bank Annual Corporate Forum 2024 on Thursday in Lagos with the theme, ‘Nigeria’s Economic rebirth: Hopes and implications.’
He said Nigeria’s foreign reserves had seen a net inflow of about $2.35 billion into the apex bank’s coffers.
“There has been a net inflow in the first seven months of this year of about $2.35 billion every month,” he said.
The minister said the increase in foreign reserves had contributed to the stability of the naira in the foreign exchange market.
“This uptick has been the case for the past seven months of the year 2024. We have relative currency stability. And of course, the all-important margin of the rates. We’ve seen a gradual elimination of multiple exchange rates.
We also have foreign exchange liquidity. The gross reserves are up.
“On the fiscal side as well, government revenues are growing and the key to government revenue is not so much that government has revenue to compete with the private sector,” he said.
Edun disclosed that the government was working to ramp up crude oil production as a buffer for the fiscal revenues of the country.
He said that the country was on track to produce the targeted two million crude oil barrels per day (bpd) before the end of 2024.
The minister added that the Federal Government would embrace policies to diversify its exports for economic growth and development.
Also speaking, Mr Roosevelt Ogbonna, the Managing director/ Chief Executive Officer of Access Bank, expressed the bank’s commitment to Nigeria’s economic growth and development.
“This year, the focus is on building a collective pathway towards the journey of Nigeria’s economic rebirth and revitalisation reflects our commitment to not only adapting to change but also leading it,” Ogbonna said.
Mr Bismarck Rewane, the Chief Executive Officer, Financial Derivatives Company Ltd., projected a 3.5 per cent growth for Nigeria’s economy in 2026.
Rewane said that the Nigerian economy would be the second largest economy in the sub-Saharan Africa by 2026.
“Telecom tariff will increase substantially; there will be efficient foreign exchange auction system; unencumbered foreign reserves will be at $20 billion; inflation will continue to decline to 22 per cent; and MPR will be reduced to 20 per cent per annum.
“In 2026, we would have a proper foreign exchange system that is functioning due to intervention funds, diaspora remittances, and exchange rate adjustment policies.”
“Dangote Refinery and production from modular refineries will guarantee regular petrol supply and will be quoted on the Nigerian Exchange (NGX); while stock market capitalisation will be N58 trillion,” he said.
He added that the NGX performance would be supported by the listing of big cap stocks such as Dangote Refinery and NNPC amongst others.
He also said Nigeria was presently confronting structural and transitory economic challenges.
Rewane explained that the current reforms were aimed at resetting the economy for industrial takeoff.
He noted that the reforms were facing pushbacks and backlashes partly due to poor designs, lack of sequencing, and clash of interests.
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