FBNQuest’s economic outlook has forecast a successive negative growth for Nigeria’s economy just as the nation awaits the report of the Gross Domestic Product, GDP, for the third quarter (Q3) of 2016.
The report titled: “A Quarter of Drifting Ahead” by FBNQuest, was unveiled at its yearly investor conference in Lagos.
Mr. Gregory Krinsten of FBNQuest, in his presentation on Nigeria’s economic outlook, said the growth pressure on the country is still high as there is a projected -1.7 per cent year-on-year contraction in third quarter, making it the third consecutive decline in the year.
According to him, the authorities seem to have no choice but to reach a deal with the Niger Delta militants and ensure that its fiscal operations provide some boosts to the economy.
However, he noted that there has been a trend of increase in the federal allocations for the past three months, but mostly driven by the devaluation of the currency and stronger non-oil revenue collections, which would expectedly rub off on government’s capital releases.
He also noted that it has become a struggle to see foreign exchange inflows to complement the Central Bank of Nigeria (CBN’s) small daily offering, adding that the various suggestions to solve the problem are either not large enough to make impact or politically unacceptable.
