Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane Thursday said the nation’s manufacturing sector is likely to grow by 4.70 per cent in 2022.
This is even as he said that the nation’s economic performance will be largely determined by the successful implementation of the 2022 budget and the newly approved 5-year development plan.
He, however, added that improved FX liquidity and increased product innovation will honour the manufacturing sector growth in 2022.
Rewane who was the keynote speaker at the FirstBank’s Nigerian Economic Outlook 2022 webinar, also stated that declining inflation will be positive for consumer purchasing power, adding that monetary tightening in advanced economies could trigger capital outflows.
He also said that oil prices will remain relatively stable, adding that real Gross Domestic Product (GDP) growth will be sublime.
According to him, in 2022, competition between traditional banks and Fintechs will intensify, while banks with constant innovation and regional diversification will remain resilient
He further noted that reform could be impeded by political considerations and labour union activities within the year, saying that insecurity could prove tricky to contain and will become a political campaign tool for the opposition.
Rewane also disclosed that the Central Bank of Nigeria (CBN) will increase forex supply to manufacturers and ease currency pressures, stressing that pre-election spending will be positive for aggregate demand and will boost corporate performance.
While giving the risk matrix in 2022, he listed Policy reversal and delayed reforms, heightened social unrest spurred by high unemployment and poverty levels, financial sector crisis, among others.
“Players would benefit from volume and value growth. Top players( Nestle Nigeria and Unilever will report profit growth of 20 per cent in 2022, the Agriculture sector is likely to grow by 1.6 per cent in 2022, an efficient rail system will ease logistics constraints and boost productivity,” he said.
Speaking further, he maintained that the ICT sector is likely to grow by 9.72 per cent in 2022, adding that telephone penetration will rise sharply.
“Also, there will be a surge in Fintech and mobile payments, while the increased level of activities will be supported by 5G operations, the sector will consolidate in within the year,” he said.
On the exchange rate outlook, he said, CBN is expected to step up efforts towards exchange rate convergence, saying that another currency adjustment in 2022 will bring the official and parallel market rate.
He also noted that political jitters would heighten forex demand pressures in the fourth quarter of the year.
Rewane added that fiscal deficits will decline and supplementary budgets are likely.
Earlier in his opening remarks, Chief Executive Officer, FirstBank Group, Dr. Adesola Adeduntan said, this webinar provides the opportunity to assess the performance of the Nigerian economy, across key indices, in 2021 and benefit from experts’ opinions on the expectations and forecast for 2022.
He said it would also provide excellent insights on the key factors that are set to shape both the global and local economic landscape in 2022.
Dr. Adeduntun noted that in 2021 global outputs rebounded and recovery was strong following improved vaccination efforts, as well as support from monetary and fiscal authorities.
However, he said the fourth wave of the Covid19 omicron variant created some level of caution, impacting the activities of the fourth quarter of 2021 and leading to the push for booster jabs and reinstatement of Covid19 protocols.
According to him, specific key lessons can be gleaned from the economic and related activities of 2021.
He further noted that these lessons and other expected occurrences in 2022 are vital ingredients to the planning processes of the bank’s esteemed customers and stakeholders.
“As a Bank, we have a legacy of supporting the growth of businesses as the engine for economic growth and development in Nigeria and across Sub-Sahara Africa. In line with our renewed vision “to be Africa’s bank of the first choice”, FirstBank will take the lead in driving the development of the different sectors and industries within the economies where we operate to support overall economic growth and sustainability.
“As a Bank that is woven into the fabric of society, this webinar is further reinforcing our support and collaboration with stakeholders as we demonstrate our commitment and willingness to be the partner of the first choice to our customers, playing a dominant financial role in unlocking the opportunities that enable businesses to grow and thrive in 2022 and beyond.
“I strongly believe that at the end of this webinar, participants would have gained valuable insights into the global and local economic direction as well as understand how to strategically position our various business and personal endeavours to harness the opportunities that would arise all through the year,” he said.
