Bismarck Rewane Managing Director Financial Derivatives stated that investors should shift their concerns on the fact that the country must have a rate of inflation that is higher than the rate of interest i.e. rate of interest that is not lower than the rate of inflation.
He went further to explain that although interest rate can be brought down, it can’t however in the space of three months be brought down from 14% to 4% because if that path was taken it will lead to reactions that won’t be desirable.
Though there is a possibility for the country to achieve economic growth as high as 2.3% this year, it might turn out sour or impossible if the administration didn’t consider and handle the listed factors carefully according to the member of the Presidential Economic Advisory Council.
– The concerns of investors about the negative real interests’ rate
– External sector Vulnerabilities
– Infrastructure.
He also stated that apart from crude oil. Infrastructure, power, rails, and road will also boost the economy. He talked about how constructing the railway station that links to Apapa will relieve the congestion of at Apapa because as opposed to putting the goods on trailers, the goods will come on Trains.
The construction of this railway will also help people beat down traffic in their commute in Lagos. People will readily go through the train to avoid insane Lagos traffic.
He added that we are able to get our GDP to 2.3% and also to 3.0% in the following year, it’s a right foot in the right direction for Nigeria as our country’s income per capita will continue to increase.
We can then be hopeful as a country.
