Posted by The economy is starting to show indications of recovery, according to Olisa Agbakoba, SAN, a former head of the Nigerian Bar Association (NBA).
Despite this, he implied that the current economic turning points are the result of the work of only two people: Allen Onyema, CEO of Air Peace Airlines, and Aliko Dangote, CEO of Dangote Group.
In response to Dangote Refinery’s launch of fuel sales and Air Peace’s flights to the UK, the Naira rose against the dollar, he claimed, as the currency market reacted.
According to Agbakoba, the Nigerian economy has had a difficult go of it over the last year. Inflation hit a 27-year high of 28.92% in December 2023.
According to the ex-NBA chair, if this tendency keeps up, Nigerians would finally get some comfort.
The specialist in law raised the question of whether or not the private sector should be the driving force behind economic progress in a Friday post on his X account.
He emphasized the urgent need for the nation to shift from consumption to production and suggested that the government step away from business.
With the title “IS THE ECONOMY BEGINNING TO TURN?,” Agbakoba wrote, “Nigeria’s economy has gone through very challenging times over the past year.” Inflation hit a 27-year high of 28.92% in December 2023. In December 2023, food inflation reached 33.93%.
Following the government’s decision to decouple the naira from the US dollar in June 2023, the currency saw a sharp depreciation, with a 25% loss in value in just one day. Imports become significantly more costly as a result.
The gasoline price spiked from ₦189 to ₦557 per liter, a 196% increase, after the fuel subsidies were eliminated in May 2023. Everything skyrocketed in price!
An extra 24 million Nigerians fell into poverty in the first half of 2023 as a result of escalating inflation, according to the World Bank. Multidimensional poverty has crept up to 133 million Nigerians by the end of 2022, affecting 63% of the population.
“The challenging operating environment in Nigeria caused major multinational corporations like Bayer, Procter & Gamble, and GSK to halt manufacturing and reduce operations in the country. Massive employment losses were the outcome of this.
“But there could be signs that the economy is about to turn?
Diesel sales began at the Dangote refinery, which greatly increased supplies and caused prices to plummet. A litre of diesel now costs around 1,350 rupees, down from approximately 1,700 rupees. And that was with only 100 million liters of pumping. Another 100 million liters are in the works according to Dangote. The price of diesel could fall below N1000. It was announced by Dangote that Premium Motor Spirit (PMS) will be available for purchase by May. The result will be a dramatic reduction in pricing. In a 25 percent drop, to N400, is what the experts are predicting for gas prices.
Not only that, but @flyairpeace finally broke over the reciprocity barrier in aviation with the backing of Festus Keyamo, Minister of Aviation. The United Kingdom is suddenly getting air peace. British Airways and Virgin Atlantic saw a 60% drop in ticket costs.
The foreign exchange market responded to all of these. When compared to the dollar, the Naira gained ground. The dollar’s value might drop below ₦1000 in the next few months, according to experts. Relief for Nigerians will be greatly appreciated if this trend persists. In the fourth quarter, the Nigerian central bank may decide to reevaluate the monetary policy rate (MPR).
Dangote and Onyema are the only two people whose efforts have led to the current economic turning points. Try to put yourself in the shoes of ten, twenty, or fifty private sector workers. One question this brings up is how to make the private sector the driving force behind economic growth. The government should get out of the corporate world. We need to stop consuming and start producing right away. It is still early days, but Q4, 2024, might have some positive aspects.