The President of Dangote Group and Africa’s richest man, Aliko Dangote has said Nigeria remains the number one economy in Africa, despite recent economic challenges.
Speaking at the 2016 Presidential Policy Dialogue session, organised by the Lagos Chamber of Commerce and Industry Dangote said he is optimistic that Nigeria will soon overcome the challenges and remain stronger.
According to him the problem with the economy did not start with this current administration while he maintains faith that the country is still the best place to invest.
On Wednesday, Bloomberg reported that South Africa has now overtaken Nigeria to regain its position as Africa’s largest economy due to the continued depreciation of the naira against the dollar.
The news agency used the data by the International Monetary Fund (IMF) that as at the end of 2015, the size of South Africa’s economy was $301 billion at the rand’s current exchange rate, while Nigeria’s GDP stood at $296 billion.
In dollar terms, South Africa has emerged as Africa’s biggest economy more than two years after losing it to Nigeria largely due to dwindling value of the naira against the dollar.
The rand had gained more than 16 percent against the dollar since the start of 2016, and Nigeria’s naira lost more than a third of its value after the Central Bank of Nigeria (CBN) introduced a foreign exchange liberalisation allowing market forces to determine the value of the local currency against the dollar.
Analysts at the Lagos-based financial services firm, Cordros Capital, said Nigeria’s GDP fell short of South Africa’s primarily as a result of Nigeria’s inability to control the value of the naira.
To reverse the trend in the immediate, the analysts, said the naira would have to reverse its losses against the USD.
“To reverse its loss against the USD, the NGN would have to close N197 by Q4 2016, which is highly unlikely.”
They further said the possibility of naira reversing its losses against the dollar may well broadly depend on the decisions of both the monetary and fiscal authorities.
“In the long term, economic activities would have to return to the pre-recession levels, wherein growth per annum was in excess of 5 per cent,” they said.
Speaking on the development, Dr. Sale Ahmed, blamed the development on Nigeria running an oil-based economy.
“South Africa continues to strengthen its financial regulatory institutions, its production and manufacturing base,” he said.
*If at this rate of hardship Nigeria's economy is number one in Africa then the whole of Africa needs JESUS FAST!
hahahahahahaahaa, Stella ur own dey ur body,,,,,,,,South Africa economy is the top in Africa.
ReplyDeleteNigeria economy the number one in Africa??? I Dont believe it.
ReplyDeleteSouth Africa is the giant now oo
DeleteStell
ReplyDeleteDey don't only need Jixox but God almighty join
I like d fact he's optimistic
Anyways Long live Federal Republic of Dankote aka Naija
Lol.
ReplyDelete1. I expect nothing more from a bourgeois like Dangote. As far as he is still exploiting people, and he's making his money, he is fine with everything
2. How can you tell me Nigeria has the largest economy in Africa when about 70% of the people live in abject poverty. Why should we be so much concerned about the state(government) and leaving the society(people).
3. If Nigeria has a larger economy than South Africa why is it that the percentage of people leaving Nigeria for South Africa is higher than those leaving South Africa for Nigeria since 2014.
4. Lastly, Nigeria has more rich people than most of these African countries and in same vein we have more poor people than than. So we having one of the largest economy in Africa does not mean the country is fine.
What's the point with the level of mass poverty.
ReplyDeleteThats what alot of nigerians dont understand. They are speaking based on gdp. But truth is gdp doesnt put food on the table. Nigeria is virtually without a middle class and thats the problem.
ReplyDeleteOn paper we are good but in reality, we are fcuked.
The vast sum of our money, businesses and real estate are in the hands of super few, hence the wealth isnt distributed.
Vote SDK for Best Blogger of the Year!
ReplyDeletehttp://www.podiumawards.org/VOTENOW-PAGE/
He was given monopoly in cement by the northern oligarchy that is how he is milking the Nigerians
ReplyDeleteTo Dangote Nigeria remains the no1 african economy because he is still rich and will forever remain so. He's such a non-aligned political whore, romancing any govt of the day and gaining from all.
ReplyDeleteNigeria Economy can never be 1st, Not while buhari z still in power. Let's just pray Uganda doesn't overtake us.
ReplyDeleteWe need to stop the blame game and start diversifying, when I was in sec schl, I attended a seminar which okonjo iweala spoke at, na so so diversify she dey shout. 2016 we are still shouting diversify. Oya, devise means to attract investors na.. no power, bad roads insecurity. This country is like a deaf, dumb, blind, lame orphan leper every part seems sick. Infact.. *packing my load* i'm moving to madagascar
ReplyDeleteNo 1 in poverty and kwarruption
ReplyDeleteHow? When his president says his country is poor.
ReplyDeleteThese are the people deceiving the government of the day
ReplyDeleteFrom Dangote? Wetin he go talk.
ReplyDeleteOr deceiving themselves
ReplyDeleteIt's good to be back in this blog.... After a long while... Stella bar, how far.... Hustle never begin dey pay oh.
ReplyDeleteDangote should take several seats already mtchwww
ReplyDeleteAunty Stella, before nko??? African countries are poor, na... Wetin dey save Nigeria self na oil wey God use bless us.
ReplyDelete