The spread of the coronavirus has had a devastating impact on the day-to-day lives of millions of people and the global economy. For oil dependent economies such as Nigeria, the impact has been more pronounced as oil prices reach new all-time lows. In response to the twin-shocks, the monetary and fiscal authorities have been active with policies – CBN stimulus measures, “adjustment” of the FX rate to N380, revision of the FGN budget, FMF stimulus package, and “disappearance” of the fuel subsidy – aimed to prevent the imminent recession.
What is the government doing to stop the spread? Are the monetary and fiscal policies deep enough? Will the FGN take IMF/World Bank funds? Will there be additional adjustment to the currency? Where do you see GDP and inflation? Has the market bottomed? What are investors buying? How should I position my portfolio?
Our Research Team – Tajudeen, Aderonke, Omotola and Lanre led the discussion.