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HomeTop NewsCBN sees Nigeria's economic growth at 2.88% this year, short of 3.75%...

CBN sees Nigeria’s economic growth at 2.88% this year, short of 3.75% estimate by FG

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By Oludare Mayowa 

The Central Bank of Nigeria (CBN) on Tuesday projected the Nigerian economy to grow by 2.88 percent this year, which fell short of the 3 percent projected by the International Monetary Fund (IMF) in November.

The CBN economic growth estimate was also far below the ambitious 3.7 percent projection by the federal government in its fiscal policy for the year.

The Finance and budget minister, Zainab Ahmed has put the country’s economic growth projection at 3.75 percent for the year.

“Ahmed stated that real GDP is projected to be 3.75 percent in 2023, compared to 4.47 percent projected in the medium-term development plan.

However, while speaking at the end of the Monetary Policy Committee (MPC) meeting on Tuesday, the CBN governor, Godwin Emefiele said “the economy is forecast to grow in 2023 by 2.88 percent by the CBN estimate.”

According to the regulatory bank chief, available data and forecasts for key macroeconomic indicators for Nigeria suggest that the economy will continue to grow through 2023,

READ ALSO: Nigeria’s stock market dips by N24 bln on back of CBN 100 bps rate hike

He, however, said that the economic growth would be at a subdued pace as a result of some debilitating factors.

“The continued high level of insecurity; perennial scarcity of Premium Motor Spirit (PMS) and high cost of other energy sources; increased spending towards the 2023 general elections; rising cost of debt servicing; and deteriorating fiscal balances, remain the key sources of shocks to the Nigerian economy,” Emefiele said.

Nigeria is currently battling to halt crude theft and insecurity in its oil-producing regions which has slashed oil output and government revenues.

The country is also trying to stabilise its ailing currency, curb surging inflation and boost growth.

Experts believed that the monetary tightening by the CBN could also hurt the economy as businesses would struggle to service the current debt while they would be unable to secure fresh facilities as a result of increased interest rates.

The IMF had last year revised the country’s economic growth rate to 3 percent from 3.4 percent earlier, citing weak oil production and the adverse effects of recent flooding.

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