Business
FBN Projects Government Spending to Propel Economic Growth in 2024
FBN Projects Government Spending to Propel Economic Growth in 2024
In a recent outlook for 2024, the First Bank of Nigeria (FBN) has forecasted positive economic growth for Nigeria, attributing it to the planned expenditure by the federal government, particularly the allocation of over N9 trillion to capital expenditure. The bank’s outlook, titled “Current Realities and Prospects,” was presented by Dr. Adesola Adeduntan, the CEO of First Bank Group, who emphasized the potential for businesses to rejuvenate, strategize, and adapt to the prevailing opportunities in the current economic landscape.
Dr. Adeduntan also underscored the swift commencement of the year, marked by President Bola Tinubu’s signing of the 2024 appropriation bill into law, which allocated N9.9 trillion for capital expenditure. He expressed the belief that this significant planned spending would create ample stimulus within the economy, enabling serious players to capitalize on the growth and aspirations of the government.
During the event, Dr. Biodun Adedipe, the Chief Consultant of B. Adedipe Associates Limited (BAA Consult), delivered the keynote address, highlighting the factors that are expected to drive Nigeria’s growth in 2024. These factors include the country’s present dynamics, such as a rapidly rising population, urbanization, increasing Internet penetration, inflation, exchange rates, and interest rates, among other indicators. Dr. Adedipe urged key players in the Nigerian economy, particularly those associated with trade groups, to engage in policy advocacy, emphasizing the numerous benefits, especially for the private sector, which holds the largest contribution to the economy.
In addition to the bank’s projections, the World Bank has forecasted Nigeria’s economy to grow by 3.3% in 2024, premised on recent reforms by President Tinubu that are expected to provide stability following a challenging year in 2023. In 2023, the Nigerian economy faced significant challenges, with inflation reaching an 18-year high of 28.2% and the naira losing almost 100% of its value on the official window. Despite these difficulties, the GDP managed a modest increase of 2.54% in the third quarter, up from 2.51% recorded between April and June 2023.
The outlook for 2024 presents a compelling narrative of potential economic growth for Nigeria, supported by government spending and anticipated reforms. The planned capital expenditure, combined with the country’s evolving dynamics and the World Bank’s positive projections, suggests a renewed sense of optimism for the Nigerian economy. However, it is essential for stakeholders to remain vigilant and actively engage in policy advocacy to ensure that the private sector and the broader economy can fully capitalize on the anticipated growth.
As Nigeria navigates through the challenges of the previous year, the outlook for 2024 offers a glimpse of hope and opportunity. It underscores the importance of strategic adaptation, policy advocacy, and proactive engagement to leverage the projected economic growth. With concerted efforts from both the public and private sectors, 2024 holds the promise of revitalization and progress for Nigeria’s economy.
