Bismarck Rewane, the Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, has forecasted that the Nigerian economy will expand by 3.5 percent by 2026, which would elevate the country’s gross domestic product to around $400 billion. He made this announcement during the Access Bank Customer Forum held in Lagos on Thursday.
Rewane emphasized that the Nigerian economy is on a path to becoming the second-largest economy in sub-Saharan Africa, with a growth rate of 3.5 percent expected. He noted that this growth trajectory is promising for the nation.
He also highlighted that the efficiency of Nigeria’s foreign exchange auction system is set to improve, with unencumbered foreign reserves anticipated to reach $20 billion. This change is expected to bolster the overall economic landscape.
Regarding inflation, Rewane projected a decrease to 22 percent by 2026. He anticipates that the monetary policy rate will be lowered to 20 percent annually, which should contribute to a reduction in the level of non-performing loans in the banking sector.
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Despite these optimistic forecasts, Rewane cautioned that the naira is likely to trade at N1,550 to the dollar in the parallel market. He attributed this to factors such as intervention funds, diaspora remittances, and existing exchange rate policies.
Rewane acknowledged that the improvements in the economy are largely driven by these intervention funds and remittances, alongside strategic adjustments to exchange rate policies. This combination is crucial for stabilizing the economy.
He further indicated that total factor productivity is expected to rise to 2.6 percent by 2026, an increase from 2.4 percent in 2024. This growth in productivity is a positive sign for the nation’s economic health.
Additionally, the trade balance is projected to improve, with expectations of an increase from $8.42 billion to $9.3 billion. This anticipated growth reflects strengthening trade dynamics.
Rewane also predicted that the price of petrol would stabilize at N900 per litre, which could have significant implications for consumers and the broader economy.
Overall, these insights from Rewane paint a picture of cautious optimism for Nigeria’s economic future, highlighting both the potential for growth and the challenges that remain.
His remarks at the forum underscore the importance of strategic economic policies and the role of external factors in shaping Nigeria’s financial landscape.
As the country navigates these changes, stakeholders will need to remain vigilant and adaptive to ensure that the projected growth translates into tangible benefits for the population.https://www.fcmbassetmanagement.com/board-of-directors/?details=mr-bismarck-rewane
