The Chief Executive Officer, Financial Derivative Company Limited, Bismarck Rewane has said that increased infrastructure spending in rails, roads will boost the growth of the economy.
Rewane who made this statement in its presentations on the Nigeria’s Economic Outlook webinar organised by First Bank of Nigeria Limited also said that cost reflective electricity tariffs will boost power supply & productivity.
Rewane stated that cost reflective tariffs will incentivize investment in power sector
while reforms would boost investor confidence & trigger investment flows in the country.
Stating the likely impact of new policies in the economy, he said the elimination of subsidies and the lower exchange rate will free up funds for all tiers of government
He said that in the year 2022, fiscal deficits will decline and supplementary budgets are likely too, but noted that lower deficit financing requirements will put downward pressure on Treasury Bill rates
He admitted that inflationary pressures will intensify for two to three months before abating if it coincides with the increase in forex supply.
He said the key drivers on the nation’s economy in 2022 include Completion of Dangote refinery in 2022, Domestication of gas, adding that once the issue of insecurity is tackle there would be increase in Foreign Direct investment (FDI) and food production.