The Central Bank of Nigeria (CBN) anticipates a moderate 2.66% recovery of the economy by 2023’s end, according to a recent Monetary Policy Committee (MPC) meeting’s Communique no 149 in Abuja. CBN’s Acting Governor, Folashodun Shonubi, expressed that despite global and domestic recovery trends, uncertainties persist due to global factors such as the Ukraine war, China’s slow economic recovery, and ongoing bricsification.
Domestically, factors such as continued insecurity in farming communities, high energy product prices, and foreign exchange market pressure contribute to the uncertainty. He projected moderate recovery for the Nigerian economy, with growth rates at 2.66% (CBN), 4.20% (FGN), and 3.20% (IMF).
Shonubi also reported the stability of Financial Soundness Indicators (FSIs) within the banking system, with a Capital Adequacy Ratio (CAR) of 11.2%, a Non-Performing Loans (NPLs) ratio of 4.1%, and a Liquidity Ratio (LR) of 48.4% as of June 2023.
He further reported bullish trends in the financial market with the All-Share Index (ASI) and Market Capitalization (MC) rising to 60,968.27 index points and N33.20 trillion on June 30, 2023, up from 51,251.06 index points and N27.92 trillion as of December 30, 2022. This upward trend indicates growing investor confidence in Nigeria’s market due to anticipated macroeconomic stability.
He concluded with a mention of the marginal increase in Gross external reserves to US$33.97 billion as of July 20, 2023, up from US$33.75 billion in June 2023, indicating persistent foreign exchange demand pressures despite weak accretion to external reserves.
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