A renowned economist and financial analyst, Mr Bismarck Rewane says Nigeria will experience mild recession this year 2023 after the general elections.
Mr Rewane who made the prediction in Lagos at a forum themed: “2023 Economic Outlook” organised by the Nigerian-British Chamber of Commerce, NBCC, however noted that the nation will recover amidst a global recession.
According to Mr Rewane, ICT, Manufacturing, financial services, real estate/construction will drive the nation’s economic growth during the year.
Popularly known as ‘the Oracle” in the economic sector, Mr Rewane predicted that the aviation sector would rebound,
but the risks of foreign exchange scarcity, poor business environment, high operational costs, poor maintenance structure and infrastructural development would impact the sector, while weak consumer demand, high energy cost would still persist.
Irrespective of who will win the Presidential election this February 2023, Mr Rewane who described this year’s economic outlook as “normalisation of the old order” said the winner of the election has a tough job before him.
He canvassed strengthening of institutions and boosting of the invisible and service sector of the economy which had grown stronger over the years.
“Nigeria’s relationship with global economic picture in the past was purely trade; we exported oil, cocoa, gas and imported trade able goods, so the balance of trade was the most important elements, but between 2003, after the debt rescheduling and now, the invisible account which is the flow of funds, investment, diaspora, dividend, illicit flows, foreign direct and foreign potfolio investment and all other flows, the invisible flow and the service sector of the economy became more important than the physical goods aspect of the economy. The investment flow and service industry is morw sensitive than the physical aspect”
“For the exchange rate, more aggressive steps must be taken to keep the Naira stable in 2023 and a unitary/floating exchange rate system is likely to be adopted in the later part of the year” he said
In an opening remark, the President and Chairman of Council, Nigerian-British Chamber of Commerce, Mrs Bisi Adeyemi explained that the economic outlook forum was in alignment with the chamber’s cardinal mandate and its commitment to continue to elevate value proposition to members and stakeholders.
Mrs Adeyemi said the annual event provides a comprehensive assessment of opportunities, challenges, and indeed, threats that businesses should expect to contend with in 2023, locally and globally.
“The forum also discusses policy approaches that could be used to improve economic growth and development.
The NBCC’s annual Economic outlook, usually held within the first month in the New Year has been a rallying point for stakeholders, including financial institutions, manufacturers and other key players in the economic sector to rub minds and project, based on expert predictions.