- Bismarck Rewane has proffered solutions to the current state of the Nigerian economy and has advice for the CBN
- The respected economist has asked the CBN to focus on stabilising the naira and controlling money supply growth
- He also identified forex supply shortages, high energy costs, and poor policy coordination as key factors in economic instability
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Bismarck Rewane, CEO of Financial Derivatives Company, has called on the Central Bank of Nigeria (CBN) to focus on stabilising the naira and controlling money supply growth to mitigate inflationary pressures.
Rewane, speaking at the 2024 Macroeconomic Outlook Forum organised by Parthian Group in Lagos, highlighted the divergence between Nigeria's parallel and official exchange rates.
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He noted that the disparity is due to forex supply shortages and market speculation.
He said:
“The CBN needs to continue to prioritise taming money growth and stabilising the naira. This is the shortest route to moderating inflationary pressure.”
Punch reports that on Nigeria's foreign exchange system, Rewane noted that fundamentals suggest a stronger naira but warned that achieving stability requires efficient management of the FX market.
Rewane remarked,
“The primary challenge lies not in the reforms themselves but in their management."
Prediction for the Nigerian economy
Rewane offered a cautiously optimistic outlook for 2025, predicting that Nigeria’s economy would begin to exit its current reform-induced challenges, with inflation expected to ease by mid-2025.
However, he warned that macroeconomic stabilisation must precede any aggressive growth agenda. BusinessDay reports.
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He added:
"Macroeconomic stabilisation must precede growth; pursuing growth first is like putting the cart before the horse.
"Revenue alone is not enough. Investment is key to growth, but it is influenced by confidence, transparency, and the right policies
Pastor Adeboye predicts naira will bounce back
Legit.ng earlier reported that Adeboye prophesied the possibility of the Nigerian currency bouncing back against the dollar with greater influence.
Adeboye revealed the prophecy at the RCCG's monthly Thanksgiving service on Sunday, with the theme 'Uncommon Miracles'.
According to the religious leader, there was a period when Nigeria's currency completely favoured the US dollar.
