High inflation, others to impede Nigeria’s economic growth – EIU

The Economist Intelligence Unit (EIU), the research and analysis division of the Economist Group, has predicted slower economic growth for Nigeria in 2022 due to power issues, high inflation and monetary policies of the Central Bank of Nigeria (CBN).

According to its latest report published on its website on Wednesday, EIU analysts expect Nigeria’s real GDP growth to slow by 3 per cent from its initial forecast of 3.3 per cent in February 2022.

Part of the report reads: “The slowdown will stem from continued erosion of household purchasing power by inflation, monetary tightening by the CBN and power-supply issues, with low water levels and inadequate gas supply constraining production”.

The group however expects better economic growth in 2023 and 2024 on the back of higher real exports and reduced imports.

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In 2025 and 2026, EIU expects a slower GDP growth as world oil prices slide and fundamentals deteriorate.

EIU projection on the economic growth in 2020, re-echoes the fears of CBN governor, Godwin Emefiele while addressing newsmen after the Monetary Policy Committee meeting.

Emefiele said available data on key macroeconomic indicators suggested a likely subdued output growth for the economy for most of 2022.

And that it “is hinged on the dampening impact to the growth of rising energy prices in the domestic economy, tightening external financial conditions and the persistence of legacy security and infrastructural problems,” he added.