Nigeria Business & Finance Updates

Economy to experience growth in 2020 — Standard Chartered

Standard Chartered has said the developments in the fiscal and monetary sectors will drive expansion in the Nigerian economy in 2020.

The bank’s Chief Economist for Africa and the Middle East, Standard Chartered, Ms Razia Khan, said this in Lagos on Wednesday.

She said, “We have positive view on Nigeria’s growth because of developments in the fiscal and monetary sectors that will drive more expansion in the Nigerian economy. We have not lowered our Nigeria’s gross domestic product and oil price projection.”

She also noted that the return of Nigeria’s budget cycle to January-December and early implementation of the budget would enhance the execution of capital projects.

“The difference in 2020 is that Nigeria has reverted to normal budget cycle as early implementation of capital projects will add stimulus to the economy,” she said.

Other developments she identified that would encourage economic growth in 2020 were the enactments of Petroleum Sharing Contract Act of 2019 and the Finance Act 2019 that increased the Value Added Tax from five to 7.5 per cent.

However, Khan warned that the ability to ensure compliance to the above legislations was where the challenge was for the government, adding that previous VAT collection did not meet the government’s projected revenue earning from it.

The Standard Chartered Bank’s chief economist also warned Nigeria to do away with its age long sharing of oil revenue every month during Federation Account Allocation Committee and focus on diversifying the economy in order to earn more revenue from other sources.

Punch

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