Nigeria’s inflation rate has been projected to grow by 18 percent, as stated in a report put together by the Chief Executive Officer (CEO), Financial Derivatives Company (FDC), Bismarck Rewane.
The report titled, ‘Oil Illusion and Financial Delusion,’ noted that food inflation would be the major culprit driving up the rate of inflation in April which was projected to average 18.5 percent.
On the growth of the gross domestic product (GDP), Rewane estimated a positive growth in the second quarter of 2021, projecting it to stand at 3.7 percent.
He added that the positive growth of the GDP would be stimulated by massive vaccination and herd immunity.
The report stated that sectors that would drive growth include trade, manufacturing, construction, agriculture, ICT, and insurance.
Increased Borrowing By African Countries
The report noted that a number of African nations sought to borrow from international capital markets, and they include Ghana, Kenya, South Africa, and Nigeria.
And in 2021, Nigeria is expected to raise $3 billion, as the government is projected to increase borrowing to cover the country’s infrastructural needs.
Rewane stated that the increased borrowing would force policymakers in Nigeria to implement structural reforms.
On African countries and seeking external funding, the report disclosed that Nigeria tapped into the $3.4 billion funding from the International Monetary Fund (IMF), while Kenya was a beneficiary of $2.34 billion COVID-19 support from IMF.
Unemployment In Nigeria
Unemployment in the country is rapidly rising to 40 percent, according to the report, possibly making the country rank the highest on the list of countries with the highest unemployment rate.
The report noted that unemployment in Nigeria rose by 6.2 percent to 33.3 percent in the fourth quarter of 2020 from 27.1 percent in the second quarter of the period under review.