Aviation, pharmaceuticals to drive economic growth in 2023 — Rewane

The Chief Executive Officer, Financial Derivatives Company Ltd., Mr Bismarck Rewane has listed aviation, chemical and pharmaceuticals, manufacturing, construction and financial services as sectors that will drive Nigeria’s economic growth in 2023.

Rewane said this at the Nigerian-British Chamber of Commerce (NBCC) 2023 Macroeconomic Outlook on Thursday in Lagos.

He predicted that global air travels would rebound in 2023 with the reopening of China’s economy and entrance of additional 40 aircraft into the aviation sector.

Rewane, however, noted that the challenges of high operational costs, poor maintenance structure and infrastructural development may impact the sector.

He expressed opitimism that the chemicals and pharmaceuticals sector would grow stupendously and hit $5.3 billion in 2024 and benefit from economic reforms including healthcare financing.

“Unstandardised herbal drugs in the market, scarce foreign exchange and illegal importation and sales of substandard products would challenge the sector’s potential.

“For the telecommunications sector, Nigeria should expect improved internet penetration and wider coverage of 5G, more dependence on blockchain technology.

“Under construction, there would be increased spending and investment on road infrastructure following the concessions of 12 federal highways.

“Manufacturing would record increasing use of technology for business activities and cost optimisation.

“However, the risks of foreign exchange scarcity, poor business environment, weak consumer demand, high energy cost still persists in the sector,” he said.

Rewane said the financial services sector would record stiff competition between traditional banks, fintechs and telecommunications forcing banks to collaborate with fintechs.

He said the realities for the country beyond elections in the third and fourth quarters would be characterised by handing over, protests, key appointments, supplementary budgets and negotiation for debts restructuring.

“No doubt, 2023 general election will hold and election runoff is inevitable and many developments will trail the outcome of the election.

“Irrespective of the political party or candidate that wins, we expect several economic reforms from the new administration as opportunities emerge after the elections.”

“Nigeria needs to send signals that the shenanigans dwindling investors confidence are over such as single window for customs operations, ruthless efforts to end oil theft and investment in petrochemical value chain.

“Government must also address economic inequality by ensuring equitable distribution of income via taxes to deliver healthcare, education, infrastructure and feeding,” he said.