CFG Advisory: Nigeria’s problem is money supply growth

Nigeria's economy faces significant challenges as the CEO of CFG Advisory, Tilewa Adebajo, highlights the pressing issue of money supply growth. Adebajo expresses concern over the 100% increase in money supply to 107 trillion naira by August this year, noting its correlation to the spike in inflation. He emphasizes that fiscal discipline, ramping up oil production, and the sell-down of oil assets to raise $50 billion are crucial steps for Nigeria's economic recovery and growth. As the year draws to a close and budget preparations for the coming year are underway, evaluating the impact of reforms and projecting the economic outlook for 2025 become essential. Adebajo's insights shed light on the complexities and challenges facing Nigeria's economy, urging coordinated efforts and strategic planning for a sustainable path forward. With inflation rates soaring despite intervention measures, the need for fiscal discipline and proactive economic policies is more pressing than ever. The divergence between the World Bank's reform timeline and Adebajo's call for immediate government action underscores the urgency of addressing economic issues at the national level. Adebajo's forward guidance underscores the importance of aligning monetary and fiscal policies, pressing the reset button for economic stability, and bolstering Nigeria's sovereign wealth fund to mitigate oil price fluctuations. As Nigeria navigates its economic landscape, concerted efforts from government stakeholders and strategic planning will be pivotal in charting a course towards recovery and stability.