The Director, Monetary Policy Department of the Central Bank of Nigeria (CBN) Dr. Hassan Mahmud has said that despite uncertainties and disruptions in the domestic and global economy, the Nigerian economy still has its positive sides.
Dr. Mahmud made this known at the Mid-year Economic Review and Outlook 2021, which was organised by the CIBN Centre for Financial Studies, in collaboration with B. Adedipe Associates, on Friday in Lagos.
He said if policy challenges with exchange rates, insecurity, food inflation and other issues were addressed, the country would see some positive projections in 2021 and the beginning of 2022.
“Also, if the CBN forecasts for GDP growth are sustained and there is improved vaccination and the health hazards and lockdowns are not resurfacing, we will see GDP getting close to 3% by the end of 2021.
“We will also see the inflation number coming down less than 13% by the end of the year and further down to the NBS projection of single digit by 2022 or the middle of 2022.
“We will start seeing a downward trend in inflation numbers particularly, headline inflation,” he said.
Mahmud added that food inflation would go down substantially if the supply side of it was addressed and security issues ended.
Chief Consultant of BAA Consult, Dr. Biodun Adedipe, said, “At BAA, our projections for Nigeria economic growth for 2021 had remained 2.54% since February and we have maintained it so.”