Skip to main content

More economic hardship may hit Nigerians in coming months, PwC projects

PwC said the recent economic reforms by President Tinubu may dampen consumer spending on non-discretionary items.

Foremost consulting firm, PricewaterhouseCoopers (PwC), has projected that Nigerians may have to contend with worsening economic realities in the coming months.

Nigerians are currently going through a torrid economic period due to ballooning inflation caused by the removal of fuel subsidies and foreign exchange rate reforms by President Bola Tinubu.

Though the federal government has proposed various palliative interventions to cushion the effect of these policies, it appears to be at sea on how to proceed with implementations as Nigerians continue to be negatively impacted.

Tinubu also pledged the government's commitment to an upward review of minimum wage, among other measures targeted at stopping the economic bleeding.

However, in its latest ‘Nigeria Economic Outlook’ report, PwC noted that wage adjustment may not be made simultaneously and proportionately.

The firm also predicted that the recent economic reforms by the government may trigger an increase in the higher cost of doing business and lower revenue for Nigerian businesses.

It added that the continued inflationary growth and rise in the cost of living may slow real economic growth in the medium term.

The report read in part, “Consumer spending may be adversely impacted by the elevated inflation rate (food 25.3 per cent and core inflation 20.3 per cent rates.) and fuel price (140 per cent increase after subsidy removal).

“Business revenues may decline in the short-term, mainly due to direct impact input costs and reduction in disposable incomes.

“Rise in energy, food, transportation, and import costs may dampen consumer spending on non-discretionary items.”

However, the firm said reforms in the financial sector, particularly the liberalisation of the foreign exchange market, could gradually attract foreign investments and boost capital inflows in the long term.

PwC foresees in the short run investors' disposition to adopt the wait-and-see approach which may be a result of the absence of further reforms to strengthen business and economic fundamentals.

It read further, “Inflation is expected to rise in the short to medium term.

“Consumers are expected to be pressured by higher prices, causing demand to slow down.

“Wage adjustments unlikely to be adjusted simultaneously and proportionately.”

ridoola.blogspot.com.ng
Labels:

Comments

Post a Comment

Popular posts from this blog

EFCC insists on presentation of Grace Tiaga's death certificate in P&ID case

Tiaga's counsel communicated the unavailability of the death certificate, requesting additional time. The Economic and Financial Crimes Commission (EFCC) is steadfast in its demand for the death certificate of the late Grace Tiaga, a former director of legal services at the Ministry of Petroleum Resources, to be submitted in court. Tiaga faced charges brought by the EFCC, alleging her involvement in receiving payments from Process & Industrial Development (P&ID) to manipulate the 20-year gas supply and processing agreement (GSPA) against Nigeria. The EFCC claims that these illicit payments were made through her daughter and persisted even after her retirement. The accusations extend to Tiaga's purported failure to adhere to due process while providing legal counsel on the GSPA. Initially facing eight counts of fraud, she was remanded to Suleja prison in 2019, later granted bail, and the charges were expanded to 13 counts. As the trial progressed, the prosecution p...
Post a Comment
Read more

List of America's one-term presidents & why they were not re-elected

U.S. President Joe Biden becomes the most recent entrant in a list of president who served for only one term. U.S. President Joe Biden announced that he would not be seeking re-election for a second term in the November 5, 2024 elections. Biden, in a statement said that he would be focused on completing his remaining term, endorsing his Vice President Kamala Harris as his most preferred nominee for the Democratic Party to take on former President Donald Trump. Joe Biden endorses Kamala Harris as Democrats' candidate after withdrawing from race [X:@JoeBiden] Biden now joins a list of former U.S. Presidents that only served for one term. John Adams (1797-1801) The second president of the United States, John Adams was a Founding Father who faced significant challenges during his presidency, including conflicts with political adversaries and foreign nations. His support for the Alien and Sedition Acts, perceived as a violation of civil liberties, contributed to his unpopulari...
Post a Comment
Read more

Tinubu appoints MKO Abiola's son, Jamiu as SSA on Linguistics & Foreign Matters

President Bola Tinubu has appointed Jamiu Abiola as the Senior Special Assistant to the President on Linguistics and Foreign Matters. The appointee is one of the children of the late Chief Moshood Kolawole Abiola , the winner of the 1993 presidential election annulled by General Ibrahim Babangida . According to a statement by Segun Imohiosen , the Director of Information and Public Relations, Office of the Secretary to the Government of the Federation on Wednesday, November 27, 2024, Jamiu's appointment took effect from November 14, 2024. Imohiosen said the appointment aligns with the provisions of the Certain Political and Judicial Office Holders (Salaries and Allowances, etc) Act 2008, as amended. Until his recent deployment, the appointee served as the Special Assistant to the President of Special Duties in the office of the Vice President. Tinubu tasked Jamiu to work closely with the Federal Ministry of Foreign Affairs and bring his wealth of experience to bear in his new ...
Post a Comment
Read more