[Nigeria Business Week] Andrea Ayemoba: Nigeria battles odds to maintain productive economy
According to the International Monetary Fund, Nigeria is being pushed to the brink by inflation. Other African economies find themselves in the same situation, but Nigeria’s plight becomes more distressing due to its sheer size and population. An evaluation of the past few weeks have given little reason for celebration, as most industries are struggling to stay afloat given the odds facing the country’s infrastructure. The naira is in free decline, adversely affecting dollar availability, which in turn generates a problem for travelers – no dollars for travel allowance means fewer travelers with less money.
Banks, which are one of the pillars of the economy, have remained in good standing. Records show they have increased borrowing from the Central Bank. An independent analysis has shown large annual allowances and compensations to bank directors at the end of 2021, which of course has raised concerns and calls for the Central Bank rein in such extravagant practices.
The Manufacturing industry in general is facing challenges, showing a second quarter contraction even steeper than the previous one. Food giant, Nestle Nigeria, is experiencing a sharp share price drop that started in January and has not stabilized to date.
Oil and Gas, affected by domestic instabilities and global trends, is also going through a rough patch. Fuel scarcity remains a problem in the capital Abuja, and in other parts of the country. But the same story is being told the world over – gas prices are soaring from continent to continent. The positive notes on the big picture are not to be ignored because they shine through a most trying time for all economies, not just the African ones. Nigeria has managed to, against all the odds, attract and raise its Foreign Direct Investment in the first two quarters of the year, as well as improve power generation. International and national organizations are working tirelessly toward the return of looted Benin bronzes, which promises a boost for the Tourism industry.
Andrea Ayemoba is a Senior Editor at Africa Business Communities.
