The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele has expressed optimism that the country would surpass the 3.4 percent economic growth projection of the International Monetary Fund (IMF).
Emefiele disclosed this on the sidelines of the ongoing IMF/World Bank Spring Meetings in Washington DC.
IMF in it latest World Economic Outlook report projected a 3.4 percent growth rate for Nigeria, against the earlier 3.7 percent projected, pointing to increasing oil prices and Russia-Ukraine war.
The Fund said, “In sub-Saharan Africa, food prices are also the most important channel of transmission, although in slightly different ways.
“Wheat is a less important part of the diet, but food, in general, is a larger share of consumption. Higher food prices will hurt consumers’ purchasing power—particularly among low-income households—and weigh on domestic demand. Social and political turmoil, most notably in West Africa, also weighs on the outlook.
“The increase in oil prices has however lifted growth prospects for the region’s oil exporters, such as Nigeria. Overall, growth in sub-Saharan Africa is projected at 3.8 per cent in 2022.”
IMF said, “Global growth is projected to slow from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023.
“This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than in the January World Economic Outlook Update. Beyond 2023, global growth is forecast to decline to about 3.3 per cent over the medium term.”
Meanwhile, Emefiele while addressing newsmen in Washington DC said, Nigeria has the potential and capacity to surpass 3.4 percent projection.
He insists that he and his team would remain focused on the primary mandate of the CBN to push up the growth rate.
Emefiele says adopting a free float management of its currency would create an exchange rate spiral for Nigeria as long as the demand surpasses the supply of forex.