Chief Executive Officer, Financial Derivatives, Bismarck Rewane, has listed four key areas that require urgent economic reforms this year.
He gave the four areas to include reduction in inflation, catalysing private investments, addressing fiscal pressure and eliminating fuel subsidy.
Rewane said this at the Nigerian-British Chamber of Commerce (NBCC) January Meeting with the theme, “2022 Economic Outlook”, on Thursday in Lagos.
Rewane also sees Nigeria’s gross external reserves declining towards $39bn as the CBN increases foreign exchange supply and allowed naira convergence.
He added that government would increase borrowing to meet deficit financing needs and may result in sovereign debt default.
He stated further that Nigerians will be richer in 2022, while pegging the country’s economic growth for the year at 3.4 per cent.
“Nigeria would be richer and better off in 2022 and key sectors to drive the expected growth are ICT and the financials because other sectors use it to drive productivity,” Rewane said.
He based the projection on the success productivity in sectors like Information and Communication Technology (ICT) and financial services.
He, however, projected that the country’s inflation rate was expected to remain structurally high with a full year average of 13.3 per cent.
The economist explained that the development would be driven by cost push factors such as fuel subsidy removal, electricity tariff and taxation.
He said the country’s Gross Domestic Product (GDP) rate would also be revised upwards to 2.8 per cent from its current 2.1 per cent based on improvements in the services and manufacturing sector.