The new ministers will be allocated their portfolios on August 21. The economic management team will have its work cut out, even though the fiscal team is appearing relatively powerless. The amendment of the AMCON Act that now allows a deputy governor of the CBN to act as chairman of AMCON will serve to weaken AMCON as an institution as it approaches its sunset clause.
Political insecurity is taking a massive toll on businesses. Logistics, insurance premiums and the losses due to disruption are major bottlenecks. The IMF has revised Nigeria’s growth upwards to 2.3% due to oil revenue elasticity on sectors that include manufacturing and trade.
The price of oil slumped today to $58.67pb on the news that global oil demand is slowing sharply. The IEA confirmed that sluggish oil demand growth since January 2019 has forced it to lower its full-year growth estimates by 100,000bpd to 1.1mbpd.
Nigeria’s gross external reserves are beginning to drip, now below $45bn and will go further. The naira will hold firm in spite of excess liquidity but is likely to succumb in Q4 as the impact of increased spending takes its toll.
In this edition of the LBS Breakfast Session, Bismarck Rewane and the FDC Think Tank address these economic and political issues and their impact on your business, portfolio and strategy.