Economic experts emphasize the crucial need for the federal government to coordinate monetary and fiscal policies to restore value to the system and alleviate inflation, a key step for the economy’s recovery and sustainable growth.

While Nigeria’s economy grew by 2.54% in the third quarter of 2023, experts argue that a more substantial impact on wealth and job creation requires a GDP growth rate of at least 5%, surpassing the population growth rate of approximately 3%.

The removal of fuel subsidy has led to over a 130% increase in revenue for the Federation Account Allocation Committee (FAAC), offering prospects for improved revenue generation and infrastructure financing in 2024. However, concerns arise over the N10 trillion deficit in the 2024 budget and the impact of the increased interest rates in the first half of the year to curb inflation and attract foreign investments.

The anticipated commencement of operations at the Dangote refinery, coupled with a potential start of the Port Harcourt refinery, is expected to reduce imports, boost trade surplus, and contribute to economic growth.

Despite hopes for value returning to the local economy amid global economic recovery, challenges such as uncertainty, stagflation, high energy costs, and a struggling manufacturing sector persist. Analysts stress the importance of implementing structural reforms, reviewing outdated industrial policies, and addressing insecurity and power supply issues to attract private investment and drive economic growth.

As Nigeria navigates these economic challenges, monitoring inflation rates and exchange rates remains crucial, with the need for coordinated efforts to ensure a positive investment climate and sustainable development.

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