‘Policy Reforms, Predictable FX System Key to Unlocking Nigeria’s Economic Potential’

Nume Ekeghe

Analysts at the Comercio Partners Asset Management have reiterated that a continued policy, and predictable foreign exchange system are key to unlocking Nigeria’s economic potential.

At a macroeconomic outlook conference in Lagos, themed, “Chess vs. Checkers: Strategic Depth vs. Tactical Simplicity in Nigeria’s Financial Markets,” the firm noted that despite the fact that policy shift has been welcomed by various stakeholders, including the Nigerian financial services sector, manufacturers, importers, foreign investors, and portfolio managers, stressed they are eagerly anticipating additional policy and institutional reforms that will boost foreign currency inflows and establish a stable and predictable foreign exchange system.

It stated: “The outlook for Nigeria’s economy is cautiously optimistic. Continued policy reforms and a focus on creating a stable and predictable foreign exchange system will be key to unlocking Nigeria’s economic potential and ensuring sustainable growth in the global market. Nigeria’s recent policy shifts signal a significant turning point for the nation’s economic trajectory.”

On the global market expectations, Chief Executive Comercio Partners Asset Management, Tosin Osunkoya, said the outlook remains mixed. 

According to him, “While advanced economies are navigating through the challenges posed by geopolitical tensions and fluctuating commodity prices, emerging markets are showing resilience. Nigeria’s proactive steps towards economic reform position it well to capitalize on global investment flows, especially as investors seek diversification and high-growth opportunities.”

Chief Economist and Head, Economic Research, Coronation Merchant Bank, Chinwe Egwim, sectors like Agriculture and Transportation are critical to drive down food inflation.

“It will be interesting to see some kind of movement, the specific sector that we see as key drivers or green shoots. And those green shoots, again, agriculture. I do not like how it’s been performing over the past six quarters. It has not been doing well,” she said. 

Stressing the need for currency stability, Chief Executive Officer, Comercio Partners Trading, Nnamdi Nwizu, maintained that it is critical to bring in flows into the country.