NIGERIA’S GDP TO EXPAND BY 3.1% IN 2024 – FBNQUEST FORECASTS
FBNQuest, the subsidiary of FBN Holdings Plc specializing in investment banking and asset management, recently released the FBNQuest Research Economic Outlook Report.
According to the report, Nigeria’s Gross Domestic Product (GDP) is expected to achieve a 3.1% growth in 2024. The document provides insights into the macroeconomic landscape, socio-political environment, and capital market, featuring perspectives on traditional asset classes like fixed income and equities. It also outlines expectations for the current year.
Despite ongoing economic challenges, market yields are anticipated to stay elevated in the current year. This is attributed to factors such as the anticipated sustained tight monetary policy by the Central Bank of Nigeria (CBN) and a substantial supply of Federal Government of Nigeria (FGN) paper driven by domestic borrowings amounting to around NGN6.1 trillion.
Tunde Abidoye, Head of Equity Research at FBNQuest, highlighted that “despite the various challenges facing the economy, including low-single-digit GDP growth, high inflation rates, and downward pressure on the naira exchange rates, the Government’s unwavering commitment to policy reforms has the potential to yield positive economic outcomes.”
He emphasized that the proposed implementation of tax reforms is expected to gradually increase non-oil revenue from its current sub-5% of GDP to the high single digits, aligning with the Federal Government’s medium-term objective of achieving 8% non-oil revenue as a proportion of GDP.
Additionally, he stressed the need for robust policy interventions and collaborative efforts to enhance tax compliance and promote investments, particularly at the grassroots level, to foster increased business productivity and sustainability.
Considering the elevated valuation levels in the equity market, FBNQuest anticipates a correction in the equity markets in the coming months, projecting an expected market return of approximately 10% in 2024.
About FBNQuest: FBNQuest serves as the unified brand identity for the Merchant Banking and Asset Management businesses of FBN Holdings Plc, a prominent financial service group in sub-Saharan Africa. Over the past decade, FBNQuest has evolved from an investment banking boutique to a full-service investment bank and asset management firm. The company delivers a diverse range of financial services through its various businesses, including Corporate and Investment Banking, Investment Management (covering Asset Management, Alternative Investments, Agency Services, and Trustees), and Institutional Securities (encompassing Structured Products, Fixed Income, Currencies & Treasury, and Equities).
“From Peter Oluka; The News Source Techeconomy”
