The Centre for the Promotion of Private Enterprise (CPPE) has projected that the Nigerian economy in 2024 may hold promise for greater stability compared to the difficulties faced in 2023.
Dr. Muda Yusuf, Chief Executive Officer of CPPE, outlined several factors contributing to this cautiously optimistic outlook on Arise Television monitored by TheWitness.
Dr. Yusuf identified the significant transitions experienced in 2023, including the national elections, as a major source of economic uncertainty and disruption.
He further highlighted the challenges posed by the Naira redesign policy in the first quarter and the implementation of two impactful economic reforms, albeit necessary, which caused initial shockwaves within businesses.
However, Dr. Yusuf emphasized that progress has been made since then.
He pointed to the country’s gradual adjustment to the realities of these reforms, coupled with ongoing government efforts to reduce its reliance on imported petroleum products, manage foreign exchange obligations, and implement fiscal consolidation measures aimed at improving revenue generation.
Yusuf noted that these combined actions are expected to contribute to a more stable economic environment in 2024.
While acknowledging that specific sectors, particularly those reliant on imports or facing high energy costs, will continue to encounter challenges, Dr. Yusuf also presented a positive perspective.
He underlined the resilience of sectors with strong local content or advanced stages of backward integration, highlighting their reduced vulnerability to external shocks.
He noted that the shocks being experienced in the economy today are largely a function of how businesses are exposed to foreign exchange.
The Manufacturers Association of Nigeria (MAN) has said that the forex crisis and high inflation in the country will limit its performance in Nigeria till mid-2024.
The Association said this in its ‘Manufacturing Sector Outlook for 2024’, noting that average capacity utilization is expected to linger around the 50% mark due to forex-related challenges and the prevailing high inflation rate, with a potential uptick only anticipated in the third quarter as these challenges subside.
It said:
