Home Business Nigeria: Otunuga – Rising Gold Prices May Support Nigeria’s Economy

Nigeria: Otunuga – Rising Gold Prices May Support Nigeria’s Economy

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As the federal government grapples with the challenge of finding solutions to Nigeria’s current economic woes, the Senior Research Analyst at FXTM Global, Mr. Lukman Otunuga, has said the nation’s economy may receive some support from the rise in the price of gold.

Otunuga equally stated that the administration of the US President-elect, Mr. Joe Biden, could bring some hope for Nigeria and the African continent.

Presenting Nigeria’s macroeconomic outlook for 2020 and beyond during a virtual meeting with journalists, yesterday, Otunuga who spoke from the United Kingdom, based his points on some positive developments in the gold subsector of the nation’s economy.

According to him, “Nigeria refined its own reserve gold bar and paid N268 million for the 12.5kg bar to start a central bank stock.”

He said the development in the gold subsector was encouraging diversification of the national economy.

He further said that the newly-regulated gold mining subsector was expected to create about 250,000 new jobs in the country.

The FXTM analyst also stated that Nigeria may record an estimated $1.8 billion economic loss from the 12 days ENDSARS protest in the country.

On the victory of Biden and its implication for Nigeria, Otunuga, said the US president-elect presidency could bring an improved, even stronger bilateral relations between the US and African continent.

According to him, Biden’s administration has the prospect of a more predictable policy towards Nigeria, adding that improving trade relations between both sides was beneficial for Nigeria.