Experts have identified six key sectors that will define the economic landscape in 2022.
They include; Sectors ICT, financial services, transport & construction, manufacturing, trade and agriculture
An economist, Mr Bismarck Rewane, speaking to the Nigerian-British Chamber of Commerce at the January breakfast meeting on ‘Economic Outlook 2022’ in Lagos this week, said internet penetration is expected to rise to 150 million; the emergence of PSBs, the fintech revolution and increasing broadband penetration will boost the sector’s performance; increased CAPEX for road and rail infrastructure; The transition to backward integration will boost the supply of raw materials and the change in the exchange rate mechanism; trade sector to benefit from improved economic activities; and an efficient rail system will reduce logistical constraints and increase productivity, and have an equally large impact on the economy this year.
He noted that economic activity in 2022 will be similar to 2021 owing to global inflation trends related to COVID-19, such as: B. the ongoing global supply shortages that will strain the supply of imported raw materials and continue to affect Nigerian businesses.
“We can expect ongoing cost-driving factors, including a planned fuel subsidy elimination, new electricity tariffs and additional taxes; alongside legacy issues such as increased debt service burdens and exchange rate conversion. Inflation will remain structurally high at 13.3 percent on average, with increases in Q1 and Q2,” noted Rewane.
But he took note of that. The country’s economic prospects were not bleak, despite its continued dependence on oil. The bank forecasts Nigeria’s economy to grow 2.5 percent at a compound annual growth rate of 3.4 percent, driven by ICT, financial services, manufacturing, trade and construction.
Government spending, he added, will increase due in particular to election spending, and the naira will effectively appreciate in the informal market.
The President and Council Chair of the Nigerian-British Chamber of Commerce, Ms Bisi Adeyemi, stated: “A key objective for the direction of the 2022 Economic Outlook is the need to undertake a comprehensive assessment of the opportunities, challenges and indeed the threats that businesses should expect to face with this year to fight.
“I’m sure many of you like me would love to have a crystal ball to give you a little insight into the year and I’d definitely like to know how a pre-election year’s permutations will affect economic indices.”