Adedipe Predicts 3.32% GDP Growth in 2023

Ugo Aliogo

The Chief Consultant of B. Adedipe Associates Limited (BAA Consult), Dr. ‘Biodun Adedipe, has predicted a positive 3.32 per cent gross domestic products (GDP) growth in 2023, a slight improvement over 3.19 percent for 2022.

Adedipe, who disclosed this at First Bank of Nigeria Limited, Nigeria Economic Outlook 2023,in Lagos said inflation rate is expected to moderate, but still double digit, therefore Nigerians should expect 17.76 per cent.

He hinted that monetary policy normalization could start as early as Q2, but assured for H2, with downward adjustment of MPR certain for H2. Expect 13.5 per cent, adding that lending rate would remain double digit.

He expressed confidence that accelerated manufacturing and focused export promotion would bring some stability to the Naira exchange rate, “official likely at about N480/$ and roadside at N705/$.”

Earlier in his remarks, the Executive Director, Treasury and International Banking, First Bank of Nigeria Limited, Mr. Ini Ebong, stated that the rising monetary policy rates, increasing debt portfolio, volatile revenue from crude oil and brain drain due to talent emigration, and other factors, have become a wake-up call for proper dimensioning of issues to drive fiscal, and other policies that will be instrumental to ensuring the gains of previous years are sustained and that the economy wades through the seemingly consistent challenges.

Adedipe added that improvement in infrastructure would begin to positively impact the cost of doing business.

He added that there would be intensified digitalization and ascendancy of the digital economy.

Adedipe, who is also the founder of Adedipe Associates Limited revealed that AfCTA has the potential market of $3 trillion and to lift intraregional trade to 20 percent for Africa, compared to 60 percent in Asia and 70 percent in European Union.

The economist remarked that the Nigeria economy is diversified and there are business opportunities in every sector of the Nigerian economy.

According to him, “There will be a large, youthful and rapidly growing population (6th largest in the world, median age at 18.1 years). There will also be rapid urbanization (51.96 percent in 2020, up from 47.84 percent in 2015).”