As we approach the 2019 elections, investors are being cautious about the likely changes and implications of economic policy before and after the elections. The Government has approved a conservative and prudent budget for 2019 of N8.73trn whilst emphasizing policy continuity.
Reserves down & Inflation up
However with a 5.08% decline in External Reserves, a 0.05% rise in inflation and a fall in consumer confidence, investors are now more nervous than optimistic about 2019. For now all eyes are on the release of the long delayed unemployment data. The cheery news is that oil production is back up to 1.8mbp and with condensates it reaches 2.1mbp. This will help replenish the fast eroding external reserves and provides support for the Naira which has fallen to N363/$ in the parallel market.
The future looks good
In this edition of LBS Breakfast Session, Bismarck Rewane & the FDC Think Tank analyses these developments and offer their perspective on the last quarter of 2018 and the 2019 year.