Speaking at the 2023 Zenith Bank International Trade Seminar in Lagos on Tuesday, August 8, Acting Governor of the CBN, Folashodun Shonubi, highlighted the nation’s standing despite the economic challenges.
Represented by Kingsley Obiorah, the Deputy Governor of Economic Policy at the CBN, Shonubi disclosed that Nigeria’s inflation rate has reached 22.8%, while the International Monetary Fund (IMF) projected a growth moderation of 3.2% for the year 2023. Shonubi addressed the audience by providing a comparative context, stating that neighboring countries such as Ghana, Ethiopia, and Egypt grapple with even higher inflation rates of 42.5%, 31%, and 36% respectively.
Shonubi acknowledged the impact of global factors on the economic landscape. The ongoing conflict between Russia and Ukraine, both significant commodity exporters, has led to global food price escalation. Moreover, a shift from goods to services, coupled with disruptions in China’s supply chain due to the transition towards renewable energy, has exerted additional pressure on worldwide economies.
China’s investment surge in property services has led to oversupply issues in its real estate market, contributing to supply chain disruptions. Shonubi detailed how this trend, alongside Nigeria’s historical non-oil exports to GDP ratio, signals the imperative for accelerated growth. He underlined that smaller nations like the Netherlands and Ireland, despite their limited landmass, demonstrate remarkable success in non-oil exports, emphasizing the need for Nigeria to amplify its export endeavors.
In conclusion, Shonubi’s discourse at the seminar underscored Nigeria’s comparatively favorable position amidst regional economic challenges, while also urging the nation to bolster its export sector as a means to achieve sustained growth and prosperity.
