Analysts Optimistic of Nigeria’s Economic Growth in 2022

Kayode Tokede

Analysts have predicted that Nigeria’s economy may witness growth in 2022, stating that the recovery path in 2021 will be critical in shaping the business and macroeconomic environment this year.

Speaking at the 4th edition of Coronation Merchant Bank Interactive Session Series, themed; “Nigeria’s Economic Landscape – a blend of optimism and uncertainty,” the analysts called on the federal government to pay more attention to the non-oil sector. 

Giving his economic prediction for the year, Advisory Partner/Chief Economist at PwC Nigeria, Andrew S. Nevin expressed his optimism for 2022, stating that: “We have a bigger economy and more economic activities than we think. 

He said, “The official number from NBS is about N20trillion in the fourth quarter which understates the economy perhaps as much as 25per cent. We also have a smaller population than estimated, so we are actually richer than we think.”

Speaking on the economic landscape of Nigeria, Founder and Chief Consultant, Adedipe Associates, Dr. Biodun Adedipe noted that: “We’ve seen the pattern in the last 10 years of non-oil sectors accounting for between 77per cent and 82per cent in terms of contribution to our GDP, while the oil sector has repeatedly accounted for less than 10per cent.  

“It is now obvious that what drives the economy is the non-oil sector and that is where we will have to pay a lot of attention. Looking at this in the context of where we are, I see an economy that will grow very strongly, and I expect growth to be sustained this year, ”he said.

Delivering her macroeconomic presentation at an event hosted virtually, Chief Economist at Coronation Merchant Bank,  Chinwe Egwim said: “Looking ahead, on the back of specific factors we expect upward pressure on prices. 

“Overall, consumption patterns are relatively better and are almost mirroring pre-pandemic levels. However, we must note that consumer pockets are still steadily being rebuilt.”

Speaking during the panel discussion, Prof. Joseph Nnanna added that, “Taking a look at the diversification strategy we need as a country to restructure the economy, moving from the factors of production within and across different sectors towards high productivity so that diversification can be achieved through encouraging private investments, foreign investments, improving infrastructure and so on.”

In his welcome remarks, the Managing Director/Chief Executive Officer of Coronation Merchant Bank, Banjo Adegbohungbe stated that, “There are a number of factors, both positive and negative that are expected to influence the macroeconomic landscape in 2022. 

“The lessons learnt on resilience as Nigeria embarked on a recovery path in 2021 will be critical in shaping the business and macroeconomic environment this year.”

He further stated that the Bank will continue to hold sessions on topical issues relevant to the markets and the economy.