CBN officials predict that Nigeria's economy will grow by 3% during the course of 2020

CENTRAL Bank of Nigeria (CBN) officials have predicted that the nation's economy will grow by 3% next year as the country gradually returns to the steady growth which in enjoyed for about 15 years until 2015.

Between 1999 and 2015, Nigeria enjoyed an average gross domestic product (GDP) growth of about 6% a year but this all came crashing down four years ago when the economy went into recession. A combination of falling crude oil prices, capital flight amid fears that the government would inhibit remittances and a collapse in investor confidence led to Nigeria's economy reporting a deficit between 2015 and last year.

Although the economy has since come out of recession, 2019 growth is only expected to be about 2%, which is less than the population growth rate. There had been fears that Nigeria could go back into recession next year but the CBN has dismissed this, saying such a prediction by the Nigeria Governors’ Forum was unfounded.

Speaking at the 2019 Regional Economic Outlook organised by the International Monetary Fund,  Dr Joseph Nnanna, the CBN's deputy governor, financial system stability, predicted that in 2020, output will rise by 3%. Also at the forum, Dr Mohammed Dikwa, the permanent secretary, special duties in the finance ministry, said there was no plan by the government to control the country’s population, which the United Nations Fund for Population Activities put at 201m on Sunday.

Dr Nnanna added: “Are we going to witness increased inflation or are we sliding back into recession? My answer is no, we are making smooth progress towards growth and by the end of 2019, all things being equal, we are likely going to have between 2.8% and 3%  gross domestic product growth rate.

“However, is that adequate? My answer is no as 3% GDP real growth rate is not enough for Nigeria where our population growth rate is 3.2%. So, per capita growth rate is still negative but definitely, we are not going through the era of 2016 when we had a recession."

Dr Dikwa added: “As of now, the government is not planning to make any policy to control population growth. We won’t have a problem with the population growth for now but if the need be, the government has every right to look into it and make consultations for us, including state governments, on what to do.”

Also, the CBN said it plans to withdraw naira notes deemed unfit for use from circulation, urging Nigerians to handle banknotes properly as it was a criminal offence to abuse them. Already, the CBN has registered eight companies to carry out cash-in-transit and two cash processing companies to operate across Nigeria.