Access Pensions Limited has projected that the high interest rate regime that characterised the investment climate in the second half of last year will persist this year.
The company stated this in its outlook for the economic and investment landscape in 2023, citing post election crises and collapse of commodity prices as key risks to the outlook.
Highlighting the factors that will shape the investment climate in 2023, the company, said, “Overall, we believe that the investment landscape in 2023 will be shaped by: Global central banks pulling the plug on the interest rate tightening cycle over 2023; Oil prices will likely recede from the conflict-supported levels towards an average around $70-80/bbl; Nigeria’s oil production is on track towards 1.5-1.7 million barrels per day, mbpd, a recovery from the depressed levels (below 1mbpd) of 2022 as pipeline security improves; The change in political leadership post the 2023 elections will provide the leeway for inflationary adjustments to petrol prices and the exchange rate; A large fiscal deficit will continue to require higher domestic borrowings but without the option of Ways & Means financing from the Central Bank of Nigeria, CBN.”
