“Light at the End of the Tunnel”: Jubilations as Anaysts Predict New Inflation Trend

• Financial Derivatives CEO Bismarck Rewane has predicted better days for Nigeria's economy despite the country's rising inflation rates
• Rewane brought up significant concerns about how the country might profit from the recent departure of a few large firms
• This came after Nigeria's headline inflation rate increased from 33.69% in April to 33.95% in May, a change of 0.26 percentage points

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Despite Nigeria's increasing rates of inflation, Financial Derivatives CEO Bismarck Rewane has forecast better times ahead for the nation's economy.

Rewane made this prediction when he appeared as a guest on Channels Television's The Morning Brief on Thursday

Rewane raised important questions on how the nation may benefit from the recent departure of a few major corporations.

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He said,

“What is more important in economics is what the future holds rather than what the past has shown.”

“Some are exiting, some are downgrading while some are coming in, those that have tolerance, and the capacity to manage the difficult situations, those ones are coming in.

“After difficulty and chaos comes light at the end of the tunnel, I think that cautiously we are optimistic that things are going to start improving slowly and that’s why I came up with the whole idea that the inflation numbers came out on Saturday and pointed to a particular type of picture which is the rate of increase in price levels has actually begun to slow down, and therefore we are projecting that inflation begins to decline from the month of July.

“We think that give or take with how the minimum wage is handled, we will begin to see a moderation in the rate of inflation in the month of July into August — not drastically, but what we call disinflation will begin to kick in at that time. So there is a flicker of light at the end of the long tunnel.”

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Recall Nigeria’s headline inflation rate rose by 0.26 percentage points to 33.95 percent in May from 33.69 per cent in April.

The National Bureau of Statistics also revealed that the food inflation increased to 40.66 percent in May from 40.53 percent in April.

This increase was driven by higher prices for millet flour, Garri, beans, wheat flour (prepacked), Semovita, and other food items.

Analysts predict good rate for naira

Legit.ng reported that financial commentators predicted that this week would witness a rise in the value of the naira due to the federal government's intention to use the $2.25 billion World Bank loan that Nigeria was awarded.

By boosting revenue, the $2.25 billion loan is primarily meant to assist Nigeria in implementing economic reforms that have resulted in the largest cost-of-living issue in a long time.

The Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing initiative is the first, and it is anticipated to receive $1.5 billion.

Source: Legit.ng