Why Nigeria’s Economy Will Continue To Recover – Rewane

Financial expert, Bismarck Rewane says the country’s economy will continue to recover as long oil prices remain higher.

The Managing Director and Chief Executive Officer of Financial Derivatives Company made this known on Tuesday during Stanbic IBTC Holdings Plc’s webinar.

According to Rewane, the supply of COVID-19 vaccines has continued to reduce the impact of Omicron on oil demand and the effect of the Iran nuclear deal is expected to push up the nation’s oil supply to the global market.

Rewane stated that sustained oil supply concerns had helped to shore up global oil prices above $80 per barrel, adding that Nigeria’s economy will continue to recover as witnessed in the last quarter of 2021.

He said the Central Bank of Nigeria (CBN) had continued to step up its intervention programme in the forex market as the nation’s gross external reserves continued to dwindle.

The financial expert, however, disclosed that the naira had continued to witness increased pressure due to excess liquidity.

He said, “The nation’s economy is expected to continue its rebound as witnessed in the last quarter of 2021 while oil prices are likely to remain high as major economies reopen fully and oil demand picks up.

“Furthermore, the advent of COVID-19 vaccines has continued to discount the impact of Omicron on oil demand while the effect of the Iran nuclear deal is expected to push up the nation’s oil supply to the global market. This is expected to provide more support to Nigeria’s earnings.”

Also speaking, Executive Director, Business and Commercial Clients, Stanbic IBTC Bank, Remy Osuagwu, said the bank would continue to partner with the CBN in its various intervention programmes to help Nigerians.