BUSINESS ‘Nigeria’s economic rebound by year end a possibility’

AResearch Analyst at FXTM, a currency trading and asset management firm, Lukman Otunuga, has said that an economic rebound by the end of the year is becoming a firm possibility.

Presently, he said, investors across the globe are becoming increasingly optimistic over Nigeria’s economic outlook.

Otunuga in an interview with Daily Trust noted that as the nation mitigates internal risks, while breaking away from oil reliance, signs of recovery and momentum are seen across Gross Domestic Growth and falling inflation, while foreign exchange has experienced an evolution.

He said as Nigeria heads into the final trading month of the third quarter, market players will closely scrutinise core data such as inflation and GDP, which have the ability to boost sentiment further, if both exceed market expectations.

Otunuga however noted that while the timely implementation of the Investors and Exporters (FX) Window is likely to boost confidence over Nigeria’s outlook, this is only the first step.

According to him, the Central Bank of Nigeria may be commended on its ability to unify some of their multiple exchanges, by letting dealers quote the Naira levels used in trades, but more transparency is still needed.

He said, while a devaluation of the Naira is likely to accelerate inflation and punish Nigerians at home, it will increase transparency and ultimately boost foreign direct investment, which could in turn fuel economic growth.