Stears, a prominent provider of economic analysis and data-driven insights, has highlighted the imperative of proactive measures to safeguard Nigeria’s economic stability amidst mounting inflation pressures in its 2024 African Outlook Report.
Dumebi Oluwole, Senior Economist at Stears, emphasised the urgency for preemptive actions to address the nation’s economic stability amidst the current headline inflation rate of 28.2 percent. Oluwole projected an annual inflation rate of 27.59 to 31.85 percent for 2024, signalling the need for proactive measures to mitigate inflationary pressures.
Oluwole highlighted the necessity for immediate action regarding dollar illiquidity to comprehensively manage inflation. She stressed the need for strategic interventions to bolster liquidity, stabilise the exchange rate, and alleviate the impact of increased fuel prices, which has significantly contributed to the rise in living costs and transportation expenses.
“Addressing structural challenges contributing to inflationary pressures is crucial for Nigeria’s economic landscape,” Oluwole remarked, emphasising the necessity for sustained efforts in the long term.
Fadekemi Abiru, Head of Insights at Stears, stressed the importance of collaborative initiatives between government bodies, regulatory authorities, and the private sector to foster sustainable economic growth. Abiru underlined the depth of analysis conducted in the report, aiming to provide valuable insights for policymakers, investors, and businesses navigating Nigeria’s challenging economic climate.
Abiru’s projections in the report indicated a forecasted growth of four percent for Africa in 2024, with East Africa leading this surge due to robust sectors like natural resources, transportation, tourism, and agriculture.
According to Abiru, while East Africa showcases promising growth, economic giants such as South Africa, Egypt, and Nigeria are poised for growth rates below the regional average, underscoring the diversity within Africa’s economic landscapes.
The report also included projections from Noelle Okwedy, Lead Energy Analyst at Stears, highlighting Nigeria’s petrol import volumes and the challenges within the electricity sector, including the groundwork for state electricity markets.
Bolatito Bickersteth, Financial Analyst at Stears, predicted a shift in bank-fintech partnerships due to upcoming stringent regulations and the rising costs associated with fintech infrastructure development. Bickersteth highlighted the potential for symbiotic relationships between traditional banks and fintech innovators, encouraging a collaborative approach to navigate regulatory challenges and tap into unexplored markets.
The report provides a comprehensive overview of Nigeria’s economic challenges in 2024, advocating proactive, collaborative, and innovative strategies to navigate the complexities of the evolving economic landscape.
