FirstBank Foresees Economic Growth for Nigeria in 2024, Urges Entrepreneurs to Leverage Opportunities

FirstBank Foresees Economic Growth for Nigeria in 2024, Urges Entrepreneurs to Leverage Opportunities

By THECONSCIENCEng

Amidst widespread complaints by citizens over harsh economic impact, First Bank of Nigeria (FBN) has said the Federal Government’s proposed expenditure for year 2024, especially the over N9 trillion earmarked for capital expenditure, will aid the nation to achieve positive economic growth.

The foremost financial powerhouse added that the development offers huge opportunity for players in the business sector to tap into the government’s growth aspirations and policy direction.

FBN’s Chief Executive Officer (CEO), Dr Adesola Adeduntan, made this statement during his welcome address at the Nigeria Economic Outlook for 2024 organised by FirstBank of Nigeria Holding, themed, ‘Current Realities and Prospects’.

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Adeduntan also noted that from all projections, the 2024 budget assumptions hold significant growth expectations.

This assertion offers a fresh ray of hope for the nation with over 220million population, bulging young people and a wobbling economy which struggled badly in 2023, with inflation reaching an 18-year high of 28.2%, the naira losing almost 100% of its value on the official window, and in the third quarter, the GDP barely limping by 2.54% up from 2.51 recorded in the second quarter, leaving millions in poverty.

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The scenario was not unconnected with the removal of fuel subsidies which led to immediate sharp rise in prices of petroleum products, triggering a chain reaction, including rising inflation, high cost of transportation, commodities, food items, housing, general cost of living and a weakened consumers purchasing power.

However, according to the CEO, “The (2024) budget assumed a growth expectation of 3.76 per cent, even though what is being projected by IMF is slightly lower at 3.0 per cent, which in itself is lower than the sub-Sahara Africa average of 4.2 per cent but given the size of our economy, whether you are looking at 3 per cent or 3.7 per cent, the growth is significant and as serious players, we do have opportunities to tap into this.”

He said, “More exciting is the amount specifically budgeted for capital expenditure. By implication, there will be significant spending that is planned that will create enough stimulus in the economy that allow significant and serious players to tap into the growth and aspirations of the government.

In his own remarks, Chief Consultant of B. Adedipe Associates Limited (BAA Consult), Dr Biodun Adedipe who delivered the keynote address at the event said, the anticipated growth in 2024 would be influenced by Nigeria’s present dynamics, including a fast-rising population, rapid urbanisation, increasing Internet penetration, inflation, current exchange rates, and interest rates, among other indicators. 

Commenting on manufacturing, he said, “Research is showing new trends in manufacturing. It shows that Nigerians buy anything you produce here. It’s a good environment for business. Globally, there’s a pattern with global trade. The pattern shift in the last 3 years shows that most countries producing for exportation are relocating manufacturing activities to their export destination countries to produce locally.”

He revealed that, “Indians, Chinese and Lebanese now dominate new manufacturing windows in Nigeria and are taking advantage”, wondering “What are Nigerians with capacity for manufacturing doing?”

He urged entrepreneurs in Nigeria to focus on opportunities rather than challenges as the Nigerian market consists of tech savvy youths and is witnessing significant improvement on infrastructure.   

Reacting to the volume of money expected to come into the economy as stimulus from government spending in 2024, he said, “There are opportunities to be created by not only the direct spending but the multiplier effect of the spending in the economy. This creates opportunities that even if you don’t do direct business with government, there’s an entity somewhere in the value chain that will connect with yours.”

He also said he was, “happy also that recently President Bola Tinubu made a remark on commodity pricing and market trend that most analysts don’t see but is the reality.

“And I told myself that this President must have people that are not only analysing issues to him about what’s happening in the market and giving him the right feedback but he’s also taking action in response to that. This is important for business people. It appears that the President takes business feedbacks and responds to what he hears, and such environment allows policy advocacy to thrive.”  

He urged key players in the Nigerian economy, particularly those associated with trade groups, to engage in policy advocacy, emphasising that value being created in the nation mostly comes from the private sector.

“Food inflation, caused by insecurity and post-harvest losses, is a key driver responsible for inflation in Nigeria and can be solved through storage and processing solutions and an all-year farming model through irrigation to assure availability and affordability, “ he also stated.