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ICT, Manufacturing, Others Critical For Economic Growth – Rewane

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An economist, Mr Bismarck Rewane, has said ICT, Financial Services, Transport, Construction, Manufacturing, Trade and Agriculture sectors are expected  to drive economic growth in 2022.

He made this known at the Nigerian-British Chamber of Commerce, January Breakfast Meeting, themed ‘2022 Economic Outlook’.

According to Rewane, internet penetration to increase to 150 million; emergence of PSBs, fintech revolution and increased broadband penetration will boost sector performance; increased CAPEX on road and rail infrastructure; shift to backward integration will boost raw material supply and change in exchange rate mechanism; trade sector to benefit from improved economic activities; and an efficient rail system will ease logistics constraints and boost productivity, and will equally have a great impact on the economy this year.

He noted that economic activity in 2022 will be similar to 2021, owing to global inflationary trends linked to COVID-19, such as the lingering global supply shortage, which will weigh on the supply of imported raw materials and continue to impact Nigerian businesses.

“We can expect to see sustained cost-push factors, including a planned fuel subsidy removal, new electricity tariffs and additional taxes; alongside legacy issues, such as increased debt service burden and exchange rate conversion. Inflation will remain structurally high at an average of 13.3 per cent, with an increase in Q1 and Q2,” Rewane observed.

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He, however, noted that. the economic outlook for the country was not gloomy, despite its continued dependence on oil, saying, the bank projects economic growth of 2.5 per cent for Nigeria, with a 3.4 per cent annualised growth rate, driven by the ICT, Financial Services, Manufacturing, Trade and Construction sectors.

Government expenditure, he added, will increase especially because of election spending and the Naira will effectively appreciate in the informal market.

The president and council chairman of the Chamber, Mrs Bisi Adeyemi stated that, “a major objective for hosting the 2022 Economic Outlook is the imperative to undertake a comprehensive assessment of the opportunities, challenges and indeed the threats that businesses should expect to contend with this year.

“I am sure that like me, many of you would like to have a crystal ball to give you a sneak peek into what the year holds, and I certainly would like to know how the permutations of a pre-election year will impact the economic indices.”British deputy high commissioner, Mr Ben Llewellyn-Jones underscored the strong bilateral ties between the two countries and the United Kingdom’s commitment to strengthening existing trade relations, including its continued support for Nigeria’s efforts to diversify its economy and open up additional areas for potential investment.

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The Nigerian-British Chamber of Commerce is the foremost bilateral Chamber in Nigeria and was established in 1977 to promote Trade and Investment between Nigeria and Britain.

 

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