Nigeria is set to release new reports on rebased CPI and GDP, which analysts predict will show real growth and influence monetary policy. Esili Eigbe from Escap Management discusses the potential impacts and cautions against expecting immediate relief from economic challenges. He emphasizes the need for continued vigilance in monetary policy and structural reforms to ensure sustainable economic stability.
Nigeria’s National Bureau of Statistics is preparing to release new reports on the rebased consumer price index (CPI) and gross domestic product (GDP). Analysts anticipate that these figures will indicate genuine economic growth and may influence the Monetary Policy Committee’s decisions. Esili Eigbe, Director at Escap Management, discusses these developments during an interview on CNBC Africa, highlighting various implications for monetary policy and economic reform.
In the interview, Esili Eigbe points out that while the rebase of the CPI could alleviate certain pressures, it may not significantly ease the burden on monetary authorities. Adjustments in CPI components could lead to lower food prices, but rising service costs might drive inflation upward in the long term. This trend presents challenges in effectively managing inflation rates due to the lagging impact of services on overall inflation.
Esili emphasizes the importance of recognizing the rebased GDP primarily as a statistical exercise rather than as a solution to Nigeria’s deep-rooted economic challenges. Issues such as inflation, currency instability, and unemployment are unlikely to be resolved through GDP updates alone. Policymakers must prioritize addressing fundamental economic concerns and implementing targeted interventions to foster sustainable growth.
Regarding monetary policy, Esili cautions against expecting a rapid transition from a hawkish to a dovish stance by the central bank, even in the face of improved economic indicators. A careful and strategic approach is deemed necessary to navigate the complexities of current economic conditions. He advocates for a balanced response from the central bank to maintain stability in financial markets amid uncertainty.
Esili notes recent positive developments in the Nigerian currency, the Naira, and its exchange rate, yet he highlights ongoing challenges related to inflation management and sustained economic progress. While the Naira’s recent stability is beneficial for businesses and investors, continued vigilance and proactive measures are essential to mitigate potential risks. The emphasis remains on maintaining prudent monetary policies to support currency stability and economic growth.
The article discusses the upcoming release of Nigeria’s rebased consumer price index (CPI) and gross domestic product (GDP) by the National Bureau of Statistics. Analysts are interested in the potential implications of these data releases on monetary policy decisions. Esili Eigbe, an expert in management, provides insights into the complexities of interpreting these economic indicators and the need for fundamental reforms in Nigeria’s economy.
In summary, while Nigeria’s upcoming reports on the rebased CPI and GDP are anticipated to reflect some level of economic growth, analysts caution that they may not tangibly address the underlying challenges facing the economy. Esili Eigbe highlights the importance of cautious and strategic adjustments in monetary policy, as well as the need to continue focusing on structural reforms. Maintaining currency stability and addressing inflation remain critical goals for the country’s economic future.
Original Source: www.cnbcafrica.com
