The Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, has said Nigeria’s economy is expected to rebound as oil prices are likely to remain higher. Rewane spoke during Stanbic IBTC Holdings Plc’s webinar titled ‘2022 virtual economic outlook – Investing and planning in an election cycle’, which was organised to reflect on economic trends that shaped 2021 and project into 2022.
He said, “The nation’s economy is expected to continue its rebound as witnessed in the last quarter of 2021 while oil prices are likely to remain high as major economies reopen fully and oil demand picks up. Furthermore, the advent of COVID-19 vaccines has continued to discount the impact of Omicron on oil demand while the effect of the Iran nuclear deal is expected to push up the nation’s oil supply to the global market. This is expected to provide more support to Nigeria’s earnings.”
He said sustained supply concerns had helped to shore up global oil prices above $80 per barrel while the Central Bank of Nigeria had continued to step up its intervention programme in the forex market as the nation’s gross external reserves continued to dwindle. He also said the naira had continued to witness increased pressure due to excess liquidity.
The Executive Director, Client Solutions, Stanbic IBTC, Bunmi Dayo-Olagunju, said the economic ecosystem could improve during the election cycle if digital technologies could be leveraged effectively.