Nigeria won’t go into recession anytime soon – Rewane

Bismarck Rewane, an economist and the managing director of Financial Derivatives, says the Nigerian economy will not fall back into recession anytime soon.

Rewane gave the assurance at the USA Fair 2019 in Lagos while speaking on ‘Forecast and Recommendations for the Nigerian Economy in Buhari’s Second Term’.

According to him, Nigeria’s GDP at $482 billion, growth rate at two percent, and the population at 190 million are indicators of an economy on a path of growth.

He noted that the real estate sector, which had suffered a consecutive decline in previous quarters, grew in the GDP report of Q1, 19; indicating that the economy would continue to expand.

The economist suggested a power sector reform which should include the conversion of the N1 trillion power sector debts into equity and a cost-reflective tariff as a way of deepening economic growth.

Others suggestions provided are: investing in new pipelines; ending financial waivers and exemptions; listing NNPC on the stock market; reducing petrol subsidy in 2019 and scrap in 2020, and change the foreign exchange market structure.

Rewane said that using monetary policy to solve fiscal problems would be ineffective, adding that between 2019 and 2023, there would be strong fiscal presence backed by complementary monetary measures to drive growth.

Optimistic of continued economic growth, the economist said the major catalyst would be a review of petroleum pricing mechanism and foreign exchange rate.

Lazarus Angbazo, president of American Business Council (ABC), said US companies are making an impact in Nigeria.

According to him, Nigeria is US largest trading partner in Africa, and despite Nigeria’s socioeconomic challenges, its viability as an investment destination has not diminished.

The USA Fair is an initiative of the American government, to celebrate mutual ideals and deepen economic growth through increased trade and investment with Nigeria.