The Minister of Budget and National Planning, Senator Udoma Udo Udoma is optimistic that the Nigerian economy will continue to maintain its recovery in 2019 as the real GDP growth is expected to hit 3.01 per cent in 2019.
The Minister, who said this at the Deloitte Dialogue on Nigeria’s Economic Outlook for 2019, recently in Lagos, added that it can only be achieved with the sustained implementation of the ERGP.
In a statement showing by Special Adviser (Media) to the Minister, Akpandem James, said, Sen. Udoma said the proposed 2019 budget is intended to further reposition the economy on the path of faster, inclusive, diversified and sustainable growth, and to continue to lift significant numbers of our citizens out of poverty.
He explained that with the improved coordination of fiscal and monetary policies, exchange rate stability, improved oil export earnings and capital inflows, as well as the continuation of the current prudent management of foreign exchange reserves by the CBN, inflation is expected to trend downwards to single digit of 9.98 per cent in 2019 from 11.44 per cent as at December 2018.
“Government is committed to growing the economy, and accordingly the 2019 Budget Proposal has been designed to continue to provide the stimulus and support required to spur growth in the economy.” he stated.
While indicating that the 2019 budget is another step in the country’s journey to ensure diversified, inclusive, sustainable growth, creating jobs for the teeming population and prosperity of Nigerians, Sen. Udoma said government expects more diversified and inclusive growth in 2019 and over the medium term.
“Our aim is to take all measures necessary to ensure that we increase the growth rate whilst maintaining fiscal sustainability.”
On oil projection, the Minister noted that the supply-side factors in crude production have been responsible for the price increase in 2018.
Although Crude oil price soared in the second half of 2018, rising as high as $81.20/b on September 24, 2018 – a four year high – it declined towards the end of 2018, falling below the 2019 budget benchmark of $60/b. While the government is obviously concerned about this recent trend, most analysts believe the price will recover in the course of 2019, and so the federal government has not seen any need to adjust its benchmark price of $60.
