A financial expert with FXTM, Lukman Otunuga, has said a lot has changed for the better in the economy since February, 2017, owing to the positive moves of the Central Bank of Nigeria (CBN).
Otunuga, in an exclusive interview, said: “The CBN implementation of the NAFEX window has improved liquidity even though a full solution has not been found.”
He urged the apex bank to do all it could to abolish the multiple exchange rate, saying it is currently coming closer to cutting interest rate with the positive development in the economy.
He further said that there were three big things in Nigeria that everybody was talking about: the $5.5bn loan, the 2018 budget and the recent Moody downgrade.
“What I have found is that the government has learnt its lesson from the 2017 budget and the 2018 budget estimates have come in more realistic with oil price at $45 and the exchange rate at N305.
“What I am a bit worried about is that in the third quarter of 2017, our oil production was at two million barrels. We will see OPEC ask Nigeria to cut production from the current level to 1.8 million barrels. If that happens, we will be 500,000 barrels down, and that will have an impact,” he noted.
He said although Moody’s downgrade slightly hit sentiments it was because it believed Nigeria had not done enough to diversify quickly. “But diversification doesn’t happen overnight, it takes a while,” he added.