CEOs Predict Bright Economic Prospects in New Year

Despite the upcoming general elections in the country, some chief executive officers (CEOs) have predicted that the Nigerian economy will perform better in 2019 than last year.

The Chief Executive Officer, Eczellon Capital, Mr. Diekola Onaolapo, pointed out that the 2019 elections are expected to impact the general economic and business environment in the first half of 2019.

Typically, investors hold out until post elections, when a new government (with formed cabinet would have taken office). We expect business to follow this pattern, he said.

Onaolapo added, “The business environment may be slow and challenging in the first half of the year, but the economy will still grow, albeit still at a slow pace overall for the year. The new government will need to be proactive and initiate policies and actions that will quick the slow pace of the economy and position the country for growth.

“Stabilisation is expected to return to the economy 100 days after the winning government is sworn into power as it is expected to have appointed its Cabinet and the market will have an understanding of the economic agenda of key members of his cabinet.

“As Nigeria is still an oil-driven economy, despite the moves made by the government to diversify the economy, activities in the global oil-market will determine the economic direction of Nigeria in the coming year. Recently, there is perceived to be a glut in the global oil market which has led to a decline in oil prices and informed the decision of OPEC and non-OPEC members to cut the supply of oil by 1.2 million barrels per day.

Read the full story here

Leave a Reply