Today, Wednesday 29th of January, 2020, we at the Nigerian Economic Summit Group (NESG) released our macroeconomic outlook report for 2020. The report will focus on Nigeria in the New Decade: Priority for accelerated growth, job creation and poverty reduction.
The NESG Macroeconomic Outlook for 2020 deals with the projected performance, structure, behavior and decision-making of key stakeholders and the Nigerian economy as a whole. Presently, the Nigerian economy is still set on the path of recovery, however, at a slow momentum and high level of fragility. The third quarter of 2019 saw the expansion of Nigeria’s real Gross Domestic Product (GDP) by 2.28% and inflation rate closing the year at 12% following the effects of the land border closure.
Furthermore, exchange rate stability was sustained on the back of continued Central Bank of Nigeria’s interventions while the foreign exchange reserves depleted significantly due to dwindling inflows from foreign portfolio investors and moderating oil prices. However, the poverty situation worsened as growth remained non-inclusive. This left over 100 million people living in poverty. The weak linkage between economic growth and socio-economic impact persists as poverty becomes endemic.
The chairman of the board of the NESG, Mr. Asue Ighodalo while unveiling the 2020 Macroeconomic outlook report stated that the NESG recognises the importance of engagement for the growth of the Nigerian economy and that is why the 2020 Macroeconomic outlook report focuses on the sectors Nigeria should proritise for growth and accelerated development in the new decade.
Speaking at the event, our Chief Executive Officer, Mr. ‘Laoye Jaiyeola stated that “To step up the inclusive growth narrative, our Macroeconomic Outlook for 2020 takes a deep dive approach to fix Nigeria’s poverty problem through accelerated economic growth and job creation as a precursor to inclusive economic growth.” He revealed that the Macroeconomic outlook is expected to provide a review of the Nigerian economy in 2019 and also provide an outlook for 2020.
In addition, Mr. Jaiyeola said: “The 2020 outlook is expected to be influenced by several events and policies such as the increase in value added tax (VAT) from 5% to 7.5%, implementation of the Africa Continental Free Trade Area (AfCFTA) agreement, movement in global oil prices, US-China trade wars, loan-to-deposit ratio and insurance companies’ recapitalisation, etc.”
The report focuses on job creation as a means of lifting millions of Nigerians out of poverty.