The Chief Executive Officer (CEO) of The CFG Advisory, Mr Adetilewa Adebajo, has commended the Central Bank of Nigeria (CBN) for its orthodox monetary policy stance, which has helped to tame inflation and FX volatility.

According to the financial expert “The trajectory of growth and inflation, though not yet optimal, is in the desired direction, allaying fears of recession,”

However, Adebajo noted that the country’s total debt burden of N121 trillion remains a challenge, with the 2024 budget debt service of N8.27 trillion exceeding both recurrent and capital expenditure.

“The sell-down of oil assets to raise $50 billion to ease the debt burden and refinance NNPC for sustained revenue and FX availability is long overdue,” he emphasized.

Adebajo also expressed concern over the government’s inability to implement social intervention programs to cushion the impact of reforms, corruption allegations, and fiscal indiscipline, which have led to disenchantment among the populace.

“It’s evident that the cart was put before the horse, as reforms were implemented too quickly, devoid of adequate planning and resources, leading to unintended consequences,” he said.

Despite these challenges, Adebajo acknowledged Nigeria’s improved fiscal situation, with revenue to debt service reduction by 30% and technology deployments improving revenue collection. He also noted that Nigeria has become the 4th largest economy in Africa.

“The government needs to urgently reset, communicate the benefits of the reform to stakeholders, and deliver tangible results by year-end,” Adebajo advised. “Our benchmark exchange rate recommendation for year-end 2024 has been validated by events and remains at N1,500-1,800/US$.”