A Better Nigerian Economy 10 Years After?

Contrary to the perception in some quarters that the economy is worse off, compared with 10 years ago, statistics reeled out by analysts suggest otherwise. Apart from a few financial indicators that have been negatively tempered due to monetary tightening by the Central Bank of Nigeria (CBN), economic growth appears more strengthened.
Data compiled by the Financial Derivatives Company (FDC) Limited indicates that 10 years ago, there were more fuel strikes than was witnessed last year. Bismarck Rewane, chief executive officer of FDC said 70 percent of the December period a decade ago was characterized by fuel strikes.
He also said that casualties resulting from the activities of Boko Haram were much lower last year, compared with some two to three years ago.
Analysts say, these are indication that the economy is in a good stead. According to them, it shows some measure of confidence in the system, and that as soon as Nigeria overcomes the next election problems,
In addition, Rewane points out that the problem of systemic failures among banks may be a thing of the past with the presence of a ‘bad bank’.
The Asset Management Cooperation of Nigeria (AMCON) was able to redeem N1.0 trillion or 6.8 percent of M2 .AMCON also Levies 0.5 percent of total assets as a sort of stabilization fund. 10 years ago there was no such thing as AMCON.
The broad money (M2) includes narrow money plus savings and time deposits, as well as foreign denominated deposits. The broad money measures the total volume of money supply in the economy. Whereas growth of M2 was about four percent last year, M2 growth averages approximately 20 percent 10 years ago.
But the central bank has consistently warned that excess money supply (or liquidity) may arise in the economy when the amount of broad money is over and above the level of total output in the economy.
One plus for the current economy compared with that of a decade ago is that inflation, a hitherto monster has been caged in the single-digit bracket for some time now, thus allow investor room to plan decently.
But the cost of a single-digit inflation rate has been interest rates. Monetary Policy Rate (MPR), the rate at which the central bank lend to other Deposit Money banks (DMBs), also referred to as benchmark rate spiked from 9.75 percent a decade ago to 12 percent currently.
The naira which stood its ground parts of last year appears to be taking a plunge this year, depreciating 10.69 percent in the parallel market. 10 years ago, it was appreciation in all three segments of the foreign exchange market.
Another negative is that oil production which averaged 2.2 million barrels per day 10 years ago has reduced to 1.8 mbd currently.
The stock market dipped 6.19 percent currently, compared with a dip of five percent a decade ago.

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