Connect with us

Business News

Policy Reversal, Delayed Reforms May Impede Growth in 2022—Rewane

Published

on

By Adedapo Adesanya

As the country continues to make recovery, one of Nigeria’s think tanks, Mr Bismarck Rewane, has warned that policy reversal and delayed reforms will hamper the much-projected growth in Nigeria’s economy in 2022.

Mr Rewane, the Managing Director/Chief Executive Officer, Financial Derivatives Company, made the postulation at the Nigerian Economic Outlook 2022 webinar organised by First Bank of Nigeria Limited on Thursday in Lagos.

In the year, he explained that heightened social unrest spurred by high unemployment and poverty levels and financial sector crisis, among others are what policymakers should watch out for.

Mr Rewane hinged the predictions on increased partnership and collaborations by Fintechs in promoting financial inclusion, adding that there would be rationalisation and drift within the industry, stressing that Tier 1 banks would leverage their robust customer base and balance sheet size.

He said there would be aggressive digital innovation and lending solutions as well as possible mergers and acquisitions within and across tiers to boost capital structure.

Looking at sectorial growths, he said the financial services industry will grow by 8.32 per cent, the manufacturing sector would likely grow by 4.70 per cent, and the agriculture sector is looking at a 1.6 per cent rise in 2022.

He predicted that improved foreign exchange liquidity and increased product innovation would boost the sectors’ growth.

“Players would benefit from volume and value growth. Top players (Nestle Nigeria and Unilever) will report profit growth of 20 per cent in 2022.

“Agriculture sector is likely to grow by 1.6 per cent in 2022, an efficient rail system will ease logistics constraints and boost productivity,” he said.

Mr Rewane added that the information and communication technology (ICT) industry would likely grow by 9.72 per cent in 2022 with telephone penetration on the rise.

“There will be a surge in fintech and mobile payments, while an increased level of activities will be supported by 5G operations, the sector will consolidate within the year,” he said.

According to him, telecommunication infrastructure will expand with cable acquisition across board.

He then said the nation’s economic performance would be largely determined by the successful implementation of the 2022 budget and the newly approved five-year development plan.

He explained that the declining inflation would be positive for consumer purchasing power, adding that monetary tightening in advanced economies could trigger capital outflows.

He also said oil price would remain relatively stable, adding that real Gross Domestic Product (GDP) growth would be sublime.

According to him, in 2022, competition between traditional banks and Fintechs will intensify, while banks with constant innovation and regional diversification will remain resilient.

He further noted that reform could be impeded by political considerations and labour union activities within the year, saying that insecurity could prove tricky to contain and would become a political campaign tool for the opposition.

Mr Rewane also said the Central Bank of Nigeria (CBN) would likely increase foreign exchange supply to manufacturers to ease currency pressures.

He stressed that pre-election spending would be positive for aggregate demand and would as well boost corporate performance.

On the exchange rate outlook, he said the CBN would likely step up efforts towards exchange rate convergence.

He also noted that political jitters would heighten foreign demand pressures in the fourth quarter of the year.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Entertainment8 mins ago

Ayra Starr thanks God, Don Jazzy and her fans as she celebrates one year in the Music Industry

News17 mins ago

Princess Shyngle reveals what she regrets not doing to Idris Elba when they met

Entertainment29 mins ago

Please you both should give us that collaboration we have been waiting for, Burna Boy will sing the hook – Rapper CDQ tells Wizkid and Davido.

Health33 mins ago

Unhealthiest Foods for Your Heart After 50, Say Dietitians

World39 mins ago

Pakistan: Woman to be ‘hanged by her neck till she is dead’ for Muhammad images on WhatsApp

Local43 mins ago

Lagos Marine Bridge rehabilitation 66% completed: Official

Politics53 mins ago

Odudu Ime Otutu crowned ‘Ultimate Craftsman‘  Gulder Ultimate Search coronation party

News59 mins ago

Being career woman is good but home mustn’t suffer –businesswoman, Ogundipe

Politics1 hour ago

Animal protection activists intensify laying hens’ welfare campaign

Local1 hour ago

Military trains 103 southern Kaduna youths on armed combat, intelligence gathering

News1 hour ago

PDP chair, ex-govs, NWC in closed-door meeting with Obasanjo

Politics1 hour ago

Insecurity: Military taskforce trains 103 civilians on armed combat 

Politics1 hour ago

JABU best graduating students get automatic employment

Entertainment1 hour ago

“He collect my gee babe ni ooo” – Viral singer, Portable accused of snatching a man’s girlfriend in Kenya (Videos)

Local1 hour ago

U.S. suspends 44 flights by Chinese carriers in retaliation against China

Entertainment2 hours ago

Ikorodu Bois hilariously reenact video of Wizkid and Davido hugging each other last night (Watch)

Health2 hours ago

The #1 Worst Supplement to Take for Colorectal Cancer, Says Study

News2 hours ago

Bandit attacks: Kaduna youths recieve armed combat training

News2 hours ago

Ayra Starr marks one year in music industry, promises never to disappoint fans

News2 hours ago

Driver crushed to death in Anambra road crash

Local16 hours ago

Amaechi bags traditional title from Daura, to be turbaned February 5

World24 hours ago

UK: nearly 1000 more illegal Muslim migrants enter Britain via English Channel this month

Politics23 hours ago

Plateau Verification Committee uncovers 709 civil servants with false ages

Entertainment8 hours ago

“It’s either private, first or business class” – Annie Idibia says she can never fly economy class

Entertainment9 hours ago

Lady recounts how her fiancé ghosted her few weeks to their wedding, after flying her to Dubai to propose (video)

World23 hours ago

The Middle East Studies Association: Why We Should Call It MESA Nostra

Entertainment9 hours ago

“What we share is beyond friendship” – Actress, Eniola Badmus reacts to rumours about her strained friendship with her colleague, Funke Akindele

Entertainment9 hours ago

“What we share is beyond friendship” – Actress, Eniola Badmus reacts to rumours about her strained friendship with her colleague, Funke Akindele

Politics23 hours ago

Civil society protests in Benin over planned hike in fuel price, electricity tariff

World16 hours ago

Biden Against Israel Pipeline to Europe, Fine With Putin’s Pipeline

News22 hours ago

Borno student slits 11-year-old’s throat for refusal to run errands

News16 hours ago

Sammie Okposo, Nathaniel Bassey, others set for Tope Alabi’s concert

World18 hours ago

Texas Temple Terrorist Tablighi Jamaat Connection Confirmed

Politics24 hours ago

COVID-19: Oyo govt distributes first aid kits to 250 BESDA learning centres

News16 hours ago

Govt moves to revive six moribund ports

News22 hours ago

2023: Multiple Igbo aspirants won’t ruin South-East’s chances, says Orji Kalu

News21 hours ago

Senior UK police officer jailed for spying on naked women

Entertainment18 hours ago

I used N100 rat poison to kill five-year-old Hanifa Abubakar – Kano proprietor confesses

Business News22 hours ago

Infinity Trust Mortgage Bank Appoints Olumorin as Acting MD

World19 hours ago

Texas synagogue jihadi was a longtime security concern, was referred to UK government counterterror program

Trending