Report Forecasts More Naira Volatility, Higher Debt in 2023 Despite Brighter Growth Outlook

• International business research firm Economist Intelligence Unit said CBN lacks liquidity to support the naira and may need foreign borrowing • EIU forecast naira will continue to be highly volatile in 2023 and could depreciate below 2,000/$ • Fuel subsidy larger than before, giving government incentive to borrow from CBN to cover fiscal costs • EIU raised 2024 GDP growth forecast for Nigeria from 2.2% to 2.5% on higher oil output and Dangote refinery production • EIU said hasty implementation of reforms like naira float and fuel subsidy removal risks mass unrest and strikes