The Manufacturers Association of Nigeria (MAN) has expressed fears that the Nigerian economy may face worse challenges this year as the country is in for a late passage of the budget.
The manufacturers project that developments in the global economy, especially in the area of interest rates and tightening commodity markets, will likely contract investment inflow to the country.
MAN said in a statement on Wednesday, 2 January 2018, that “being an election year, performance of the economy in 2019 would, to a large extent, depend on the transparency and credibility of the election.”
“Distractions from political activities may slow down infrastructure spending and the performance of the manufacturing sector being a sector whose operations rely heavily on these infrastructures.”
“Inflation rate might slightly increase due to electioneering spending resulting from heightened political activities and lack of proper policy coordination,” Nigeria’s Vanguard newspaper quoted MAN as saying.
MAN noted that even though the Central Bank of Nigeria is in a stronger reserve position than in recent years, there may be a slight depreciation of the value of naira, due to the recent pressure on the country’s external reserve, amidst the continuous dip in oil prices and the usual withdrawal of foreign capital as a result of anticipated political uncertainty.