By Tanko Mohammed
The Chairman of Presidential Economic Advisory Council, Dr Adedoyin Salami, has urged Nigeria to pay attention to what would be happening internationally from tomorrow, as a new administration takes off in the United States.
Salami gave the advice at the Seventh National Economic Outlook, with the theme “Implications for Businesses in Nigeria in 2021”, held virtually on Tuesday in Lagos.
He wondered what was going to be the policy dimension of the new administration and how it might affect countries like Nigeria.
According to him, taking cognisance of what happens internationally is one of the key things that will drive Nigeria’s economy in 2021.
“Now, what is going to drive economy in 2021? The key things are as follows: what happens internationally is very important to Nigeria.
“Fortunately for us, the latest World Bank review, published about a week ago, projects positive growth as far as the global economy is concerned.
“And so, that is the first thing we have to take cognisance of in 2021!
“The World Bank projects a growth of four per cent in global economy; this is a sharp improvement from the contraction that we are expecting to be posted to be finally confirmed for 2020.
“So, in terms of global economy, growth is expected to be seen in oil prices; we expect that OPEC restrictions will remain in place for the whole of 2021.
“Therefore, for Nigeria, and interestingly international environment, growth will ordinarily remain the opportunities to explore, but we are going to have to wait and see how coping may or may not affect these projections,” Salami said.
The Chief Consultant of B.A Adedipe Associates, Dr Biodun Adedipe, while giving an overview of the economy and 2021 outlook, said his organisation believed that the economy had brighter prospects than what world bank and others projected.
” For us in BAA Consult, we see a prospect that is brighter than what World Bank, International Monetary Fund have projected.
“For us as BAA consult, we see a GDP growth that will be much better; of course, lower than what NBS projected, but better than what world bank and IMF projected.
“Why do we say that? Now, there is a pattern with Nigeria economy, over the decades, that oftentimes, the way our economy responds to not only stimulus on the one hand, but to developments even in international markets, completely runs contrary with the normal economic projections that are made.
” So, but given that, we also see that there’s likely going to be some good news, if you look at the projections of the demand for crude oil this year, all the projections point positive.
” So, the area that would have been of concern to Nigeria is production and exports,” Adedipe said.
Earlier, Mr Bayo Olugbemi, President/Chairman CIBN, said that the economic outlook initiated in 2014 was designed to bring together captains of industry, subject matter experts, seasoned practitioners, and relevant stakeholders.
He said it was to bring them together to discuss emerging and pertinent issues facing both the national and global economies, as well as their implications for businesses.
The CIBN president was represented by Prof. Pius Olanrewaji, second Vice president, CIBN.
He said that this year was peculiar as the session was held virtually for the first time due to the surge of the COVID-19 pandemic.
“It is also notable, as this is my first experience addressing you as the President/Chairman of Council of our great Institute.
“It is my intention that today’s event holds at par with the high standards set by the leaders who came before me”, he said.
The forum, organised by the Chartered Institute of Bankers of Nigeria Centre for Financial Studies, held in collaboration with B. Adedipe Associates Ltd.
The forum discussed emerging issues in the banking industry and economy, as well as their implications for businesses in 2021.
It also examined significant impact of coronavirus pandemic on key sectors of the economy, and how businesses in can survive and grow despite the rough terrain in 2021.