Economic headwinds arising from the US Fed’s end to its third economic stimulus program (QE3) and falling crude oil prices defined Nigeria’s fiscal and regulatory landscapes in 2014. Against this backdrop, the Central Bank of Nigeria (CBN) battled during the year (2014) to contain the attendant impact of these emerging trends by tightening monetary policy with far greater thrust in the final quarter of last year.
With the import-dependent Nigerian economy tied to the bootstraps of crude oil earnings, the expected hike in interest rate by the US Fed in 2015, OPEC’s decision to maintain crude output at current levels despite weakening oil price which unfortunately, is trading significantly below the benchmark oil price assumed in the 2015 National Budget, the February 2015 general elections, all of these point to a challenging 2015 for Nigeria.
In spite of these challenges however, it is not all doom and gloom as opportunities still abound in the economy especially for discerning investors. After a holistic review of the Nigerian macroeconomic landscape, we have detailed our economic expectations for 2015 covering the following areas:
- Oil prices in 2015
- Exchange Rate Policies
- Growth rate of GDP
- Capital Inflows
- Import Substitution Initiative
Please click here to read GTBank’s 2015 Economic Outlook.