By Nkiruka Nnorom
At the backdrop of the reversal in economic expansion witnessed in the first quarter of the year, Q1 2018, FSDH Merchant Bank has said that more fiscal and monetary measures will be required to put the economy back on growth track.
The economy, which had expanded for three consecutive quarters, regressed to 1.95 percent year-on-year (YoY) in Q1’18 from 2.11 percent in the preceding quarter (Q4’17).
In a research report it published yesterday, the bank said that more of fiscal and monetary policy are needed in order to generate employment opportunities.
It added that the expected growth in government spending in the second half of the year, once the 2018 budget is signed into law should increase economic activities with positive impacts on the income of households and firms.
It further stated that the mining and quarrying, agriculture, manufacturing, trade, and information and communication are the major sectors that would lead the recovery in 2018, adding: “We believe there are financing and investment opportunities in these sectors.”
It, however, stated that security challenge in some parts of Nigeria remained the major downside risks to the recovery, while revising its Gross Domestic Product, GDP, growth forecast for 2018 to 2.78 percent, down from the previous forecast of 3.16 percent,.
Also, Cordros Capital in its report said though the growth in both the oil and non-oil sectors are cheering on the surface, but the fact that growth rate in the latter significantly lags the strong double-digit recorded in the former is a cause for concern.