Macroeconomic Stability in Nigeria Has Improved—Report

By Modupe Gbadeyanka

The latest findings from the Africa Trade Barometer Report 2022 have indicated that the macroeconomic stability in Nigeria has improved significantly, and business confidence has been boosted, with several small businesses growing through prudent fiscal and monetary policies.

This report was released by Stanbic IBTC Holdings, a member of Standard Bank Group, and it assessed key economic indicators in Africa, highlighting several noteworthy developments across 10 African countries.

According to the survey, Nigeria is placed eighth out of the 10 countries on the Africa Trade Barometer (ATB) after dropping one position (sixth to seventh place) on the Qualitative Trade Barometer (QTB) rankings and gaining two places (10th to eighth position) on Survey Trade Barometer (STB), which was driven mainly by directional improvements in the trader’s financial behaviour.

Nigeria’s economic growth has largely recovered after the 2020 recession (primarily brought about by the COVID-19 pandemic). The projected economic growth (3.2% in 2022-2024) is average.

The Head of Business and Commercial Clients at Stanbic IBTC Bank, Remy Osuagwu, noted that the report’s findings were a testament to the hard work and commitment of businesses and people in creating a conducive environment for economic development.

“The Africa Trade Barometer Report 2022 identifies several positive developments, challenges, and how to scale up a business in Nigeria’s trade sector.

“These developments demonstrate the country’s resilience and potential for growth and should encourage investors to explore opportunities in the region.

“At Stanbic IBTC, we remain committed to supporting our clients and partners in navigating the opportunities and challenges presented by the African market,” Osuagwu added.

A look at the report showed that it identified an increased trade openness across the continent, with various regional and multilateral agreements facilitating this positive trend, reducing trade barriers and improving market access.

Nigerian firms have become more optimistic about prospects for importing and exporting, with a significant increase in imports and a directional increase in exporting.

The report also provided insights into traders’ financial behaviour and access to finance, highlighting the need for financial institutions to provide affordable, accessible, and appropriate financial services to traders, especially small and medium-sized enterprises (SMEs), to support their growth and expansion.