Nigeria’s economy is at a crossroads, with monetary measures aimed at stabilising inflation while public debt and slowing growth remain major issues.
In this report, TVC’s Uloma Onyemachi speaks with an expert on the effectiveness of these measures and future estimates.
Nigeria’s monetary policy, as executed by the Central Bank of Nigeria, continues to influence the economy.
Through actions like adjusting exchange rates and raising interest rates, the CBN says its goal is to control inflation and maintain economic stability.
However, reports from the World Bank over the past five years reveal significant challenges.
Nigeria’s economy has grown by only 2.6% annually, which is slower than the population growth of 2.7%.
Meanwhile, public debt has surged to $116 billion as of 2024, with debt servicing consuming over 96% of federal revenue in 2022.
In an interview with a Business analyst, Ogbonna Ukuku, we talked about the state of the economy, acknowledging that addressing long-standing economic problems requires patience and consistent policies.
Mr. Ukuku also discussed the central bank’s monetary policies with regards to the latest inflation report from the National Bureau of Statistics, which puts October’s rate at 33.8%.
He explained that the CBN’s measures aims to prevent a recession while preparing for the next Monetary Policy Committee meeting.
According to him, Nigeria’s economic policies are gradually restoring confidence in the forex market among international organizations.
But he emphasised the need for more investment in technology, reduced dependence on oil, less reliance on imports, and stronger focus on research and development to create a more sustainable economy.
A big question remains: how can Nigeria tackle its economic challenges? What are the short- and long-term solutions?
As Nigeria looks toward economic sustainability in the coming years, the goal is to leverage its strengths for a more prosperous future.
