The Central Bank of Nigeria (CBN) has refuted the forecasts of the Federal Government and the International Monetary Fund (IMF) for the Nigerian economy in 2023.
On Tuesday, the central bank said Nigeria’s economic growth would be slower than expected by the Nigerian government and global financial institutions.
According to top bank boss Godwin Emefiele, the CBN’s Monetary Policy Committee (MPC) expects the country’s economy to grow by 2.88% in 2023, while FG and International Monetary Fund.
“Available data and forecasts for Nigeria’s key macroeconomic indicators suggest that the economy will continue to grow until 2023, but at a slower rate,” Emefiele told a post-Monetary Policy Committee meeting in Abuja.
He added, “Based on CBN estimates, the economy is expected to grow by 2.88 percent in 2023, the federal government estimates 4.2 percent and the IMF estimates 3 percent.”
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Main sources of economic shock in Nigeria
Emefiele said Nigeria’s economy was at risk of a war between Russia and Ukraine, heightened inflationary pressures in several economies, and the return of COVID-19 in China had led to a sharp slowdown in economic activity in the Asian country.
He cited rising debt levels, high levels of insecurity, scarcity of premium motor spirits (PMS) and increased general election spending as other major shocks to the Nigerian economy.
“Key risks remain lingering headwinds from the Russo-Ukrainian war, heightened inflationary pressures in several economies and a sharp slowdown in economic activity in China, and a resurgence of the COVID-19 pandemic in major cities.
“As monetary policy normalization continues, external financial conditions deteriorate, with corporate and public debt levels rising rapidly and the risk of a global recession rising in 2023, increasing the risk of a global debt crisis,” the top bank said.
The financial watchdog further stated that “continued high levels of insecurity, scarcity of Premium Motor Vehicle Spirits (PMS) and high costs of other energy sources, increased election spending, rising debt servicing costs and deteriorating fiscal balance remain the main sources of shock to the Nigerian economy. “
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