Uncertainty over Economic Outlook for Second Half 2015

Barely few days to the inauguration of a new administration, economic experts at the weekend expressed worry over the uncertainty of Nigeria’s economic outlook for the second half of the year. Economic watchers, who spoke with THISDAY, said the deplorable state of the nation’s economy, which manifested in a fall in the Gross Domestic Product, has shown that until the incoming administration fully unveils its economic blueprint, the state of the nation’s economy for the second half of the year would continue to be a guess work.

According to figures released by the National Bureau of Statistics (NBS), the Nigeria’s GDP stands at 3.86 per cent compared to 5.94 per cent in the previous quarter.

Market watchers

said expectations were high that with the first five months of the year already gone, financial analysts are expected to have been giving projections of what the remaining half of the year will look like by now.

Unfortunately, nothing seems to be done in that regards given the secret nature of the economic blueprint of the incoming administration, observed a bank’s managing director.

In his response to THISDAY enquiries last week, Managing Director, Dunn Loren Merrifield Asset Management and Research Ltd., Mr. Tola Odukoya, said the present scenario in the country makes it pretty difficult to project the direction of the next half.

“However, the GDP will surely bounce back if the incoming administration is pro-investment”, he said. To him, the incoming administra- tion should invest genuinely in infrastructure, education and health sectors, these are core areas that will be beneficial to all and will in turn breathe in the country’s coffer.

“For the economy to regain its vitality, the incoming administration needs to take initial tough measures which, of course, will be hard on Nigerians, this is however necessary for us to enjoy in the long run. Nigerians should brace up for hard times,” Odukoya said.

On the 2015 budget that was recently approved by the federal government, he said: “Except if a supplementary budget will be drafted, that will then apportion the right percentage to the capital expenditure above that of recurrent, I’m afraid we may be singing the same song come next administration.”

He also called for full privatisation of power and a total removal of fuel subsidy.