Economy
NESG Forecasts 3.5% GDP Growth, 21.5% Inflation for Nigeria in 2024
By Adedapo Adesanya
The Nigerian Economic Summit Group (NESG) on Wednesday said that Nigeria’s Gross Domestic Product would grow at 3.50 per cent in 2024, with inflation projected to average 21.5 per cent in the year
The group made the forecasts in its 2024 macroeconomic outlook report titled Economic Transformation Roadmap: Medium Term Policy Priorities, launched in Lagos on Wednesday, noting that various reform programmes initiated by the Bola Tinubu-led government are expected to trigger an uptick in economic growth as strains on investment are addressed and low productivity in critical sectors resolved.
It said the services sector will remain the economy’s key driver, while the anticipated rebound of the country’s oil sector will push stronger real GDP growth in 2024.
As of the third quarter of 2023, Nigeria’s economy recorded a growth of 2.54 per cent, showing a slight uptick from the 2.51 per cent observed in the second quarter.
During this period, the oil sector experienced a moderated contraction, and the impact of governmental reforms targeting output enhancement had yet to materialise.
“Based on the optimistic view of a comprehensive overhaul of the country’s economic system and stable outlook, Nigeria is expected to experience inflows of investments into key sectors.
“This will result in improved sectoral productivity and generate significant jobs that would moderate or slow down the growth of unemployment in Nigeria,” the NESG said.
The group also projected the moderation of the inflation rate to 21.5 per cent from an estimated average of 24.5 per cent in 2023.
The latest data from the National Bureau of Statistics shows Nigeria’s annual inflation rate rose to 28.92 per cent in December 2023 from 28.20 per cent in November.
The NESG said the country will experience moderate inflationary pressure this year, which aligns with that put forward by the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, who put his target at 21.4 per cent.
“The slowdown in inflationary pressure will be driven by lower deficit monetisation structurally, relative exchange rate stability, and other heightened monetary measures by the Central Bank. In addition, food inflation will remain the fundamental driver of inflation due to increased cost of credit, insecurity, and internal displacement.
“The removal of fuel subsidies will continue to increase core inflation, primarily through high transport and energy costs,” it said.
It also projected that the rate of unemployment will slow down while anticipating enhanced productivity and output in labour-intensive sectors such as construction, agriculture, trade, and manufacturing sectors.
“The rate is anticipated to ascend to around 5.0 per cent, while the poverty headcount is expected to approach 41.5 per cent due to improved performance in these job-intensive sectors,” NESG said in its outlook.
With a population growth rate estimated at 3.2 per cent, this trajectory is set to bolster the overall impact of economic growth on real per capita income.
It said the combination of these factors, alongside a consistent policy environment, is expected to strengthen foreign capital inflows in 2024.
The country is positioned to sustain a trade surplus, increase foreign reserves, and experience diminishing exchange rate pressures throughout the year.
The NESG said with diminished political risks and enhanced returns on investments, the likelihood of attracting confident foreign investors and activating funds previously inactive among local investors appears promising.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.
Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.
In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.
Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.
Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.
On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.
Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.
Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.
By Adedapo Adesanya
Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.
In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.
Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.
“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.
He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.
Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.
“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”
By Adedapo Adesanya
The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.
Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.
At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.
Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.
This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.
Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.
Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.
As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.
The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.
Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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