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Nigeria: Analysts Predicts End to Cash Crunch Post General Elections

Analysts have predicted that the nationwide cash crunch following the Central Bank of Nigeria (CBN) naira redesign policy would subside post presidential and national assembly elections.

Also, the analysts urged the incoming government to first unite the country and roll out policies that would encourage private sector growth.

They hinted that the economy regardless of who is elected to the highest office in the land would bounce back.

Specifically, the Chief Executive Officer, Eczellon Capital, Diekola Onaolapo said he believes the conclusion of the general elections should ease the current cash crunch in the country.

He also stressed that with the glaring economic headwinds evident in Nigeria, an incoming government should be more deliberate in policies involving the economy.

However, he predicted an uptick in the Nigerian economy.

According to him, “After the elections, the cash crunch would subside and everything should return to normalcy.”

Furthermore, he noted that there are a lot of economic headwinds on the global front, which an incoming president of Nigeria would have to deal with.

” Nigeria is particularly unique in the sense that in addition to economic issues, it also had its own socio-political issues that need to be dealt with. And these are challenges a new president would have to face. As we speak, we can’t call the election but the comfort an analyst like me, has with this election coming in is that the candidates all should be able to assemble a solid enough team to manage the economy because I think that’s one of the things that the country has not clearly enjoyed in recent times. I hope that one of the things that we will see in the incoming administration would be a good vision plan and then we have a competent team that can execute it, “he said.

On his part, the Head, of Financial Institutions Ratings at Agusto & Co, Mr. Ayokunle Olubunmi said: “Now that the election is over, we expect an increase in the supply of cash into the economy. So the cash crunch we have been experiencing over the last few weeks would reduce. I also think the CBN would actually increase printing because their focus was to reduce vote buying and so now, we would have more cash in the economy.”

On policy focus for an incoming government, he added: “The Presidential elections are over and the wisest thing to do for the incoming president is to look for ways of reconciliation and finding a way of uniting the country. If it is a Tinubu presidency, I believe he would partner more with the private sector unlike what we had in the last eight years.”

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