Rating agency August & Co. has stated that Nigeria managed its economy poor in the last years.
This is according to its monthly Newsletter for January titled, “2024: A year of reckoning, turning points and balancing acts” where it made projections on different aspects of the economy ranging from foreign exchange to inflation, GDP growth etc.
While commenting on the need for a coordinated and fiscal policy response to the country’s economic woes, it stated that, unlike the previous administration, the current government will properly manage the economy.
It stated, “This alludes to the need for a coordinated monetary and fiscal policy response, and we believe that a strategic balance between economic policies and external factors will determine the trajectory of the Nigerian economy in 2024.
The good news is that the Nigerian economy is unlikely to be as poorly managed in the next four years as it was in the previous eight.”
On food production, the rating agency noted that the discontinuation of intervention finance coupled with insecurity across the Middle-belt and North-west and increased tensions in the Niger Republic would gravely impact crop production this year.
Beyond the official statement announcing an end to the program, the bank’s Governor Yemi Cardoso have at different fora defended the current policy differently.
Augusto & Co also projected the exchange rate of the Naira to the USD to converge at N1100/$ on the official market at the end of 2024. Currently, the exchange rate trades at over N1400/$ to the USD on the official market.