FBN forecasts government spending to drive economic growth in 2024.

FBN forecasts government spending to drive economic growth in 2024.

First Bank of Nigeria (FBN) has projected that Nigeria will record positive economic growth as a result of the planned expenditure of the federal government especially the over N9 trillion allocated to capital expenditure.

The bank states this in its outlook for 2024 themed “Current Realities and Prospects”

While presenting the introductory address, Dr Adesola Adeduntan, the CEO of First Bank Group, emphasized that 2024 presents a chance for businesses to renew, strategize, and adapt to the prevailing opportunities in the current landscape.

Adeduntan also highlighted the fast start to the beginning of the year, marked by President Bola Tinubu signing the 2024 appropriation bill into law, allocating N9.9 trillion for capital expenditure.

He started,

“So by implication, we believe there will be significant spending that is planned that will allow and should create enough stimulus within the economy that allows significant and serious players to be able to tap into the growth and the aspirations of the government,”
Factors to drive Nigeria’s growth in 2024
Also speaking during the event was the Chief Consultant of B. Adedipe Associates Limited (BAA Consult), Dr Biodun Adedipe who delivered the keynote address.

According to him, the anticipated growth in 2024 would be influenced by Nigeria’s present dynamics, including a fast-rising population, rapid urbanization, increasing Internet penetration, inflation, current exchange rates, and interest rates, among other indicators.

Nevertheless, he urged key players in the Nigerian economy, particularly those associated with trade groups, to engage in policy advocacy, highlighting numerous benefits, especially for the private sector, which holds the largest contribution to the economy.

What you should know
The World Bank projects Nigeria’s economy to grow by 3.3% in 2024 on the premise that recent reforms of President Tinubu will provide leeway for stability after a hard hit in 2023.
In 2023, the Nigerian economy was hard hit with inflation reaching an 18-year high of 28.2% and the naira losing almost 100% of its value on the official window.
In the third quarter, the GDP barely limped by 2.54% up from 2.51 recorded in between April and June 2023.