Research experts have urged the federal government to take advantage of opportunities to grow the country’s economy in 2018, and not to waste it las seen in 2017.
SBM investment and Research expert in its review of its 2017 forecast and 2018 preview recently released to the investment community, said that 2018 is likely to project remarkable earning opportunities to grow Nigeria’s economy, but the extent of maximization of such opportunities would depend on the government.
As we enter the election campaign season, questions remain about the fundamental structure of Nigeria’s economy, and the Nigerian state itself.
The forecast , pointed that concern for enhancement of growth opportunities arose , hence “Increasingly, the Nigerian state no longer participates in the life of the Nigerian, except in the collection of taxes, levies and charges for certain required government services. Things will come to a head at some point”
The report pointed that the country failed to take advantage of growth opportunities presented by economic depression in 2016 and 2017 to grow its manufacturing sector and boost economic development, as it hinged GDP growth to oil price increase and increase in production of crude while production sustained a marked descent.
Irrespective of the blown opportunities in 2017, SBM Intelligence in its 2018 forecast pointed that another growth opportunities are encased in the coming year.
2018 will present the Nigerian with a range of opportunities on a host of fronts. Which opportunities get maximized will depend on her location, the prevailing economic climate and level of risk appetite, it said.
The 2018 economic preview by SBM intelligence, Nigeria’s GDP growth rate will double in 2018 despite the recent caps on production placed by OPEC, such growth, the report said, would be driven by further increases in oil prices early in 2018, as a result of political upheaval in the Middle East which will cause supply disruptions in the global market leading to further increases in oil prices early in 2018.
The report stressed that 2018 will present a mixed outlook. The government’s hope for the effects of rising oil prices to trickle down to various segments of the national economy, and by extension, down to the average Nigerian will be hinged more on hope than actual substance.
For Nigerians to feel the real effects of a slowly recovering economy, more clarity on fiscal and monetary policy will be needed. However, with the general elections on the horizon, save for a few big ticket projects, this is unlikely to happen as we will be more likely to see direct cash transfers rather than policy actions that will be more long than short term.
Researcher, SBM’s analysis of what Nigeria should expect next year released forecasts that by the end of 2018 “we predict that interest rates will be around 12%” it also added that 2018 budget implementation would not outperform those of the previous two years.
The SBM forecast for 2018 revealed that Nigeria’s prevailing issues around electricity tariffs will not be resolved in 2018, hence investment in power generation will continue to be slow and the country will not achieve 10GW power generation in 2018.
According to the analysis of expected 2018 events, some power projects, most notably the Afam project, will close during the year, caused by non-resolution of tariff regime, a trend that shows, Nigeria will further reflect noticeable impact on the productive capacity of the nation