Economy of Nigeria and Africa in 2022
This is an important question that people ask at most times because there are always expectations and fear about how would next year (2022) be like for Nigerians and Africans? 2021 was a horrible year for most people as there was a bad economic shock in Nigeria and a biting recession. Right now, it’s most probable that there are many questions running through your mind.
How would next year be?
How much money will I make?
Would next year be better for me?
Would COVID-19 still be a problem in 2022?
Would COVID-19 disappear in 2022?
Nigeria’s Economy in 2022
This is the first aspect we should think about when imagining how would 2022 be like for Nigerians and Africans? How would Nigerian and African economy be like? Would it gain or lose? Would it expand or contract?
Nigeria’s economy, and also African economy in general, in 2022 would continue to make improvement and experience growth like it did in 2021. There was a report of Nigeria’s improvement beginning from the last quarter of 2020 and accelerating in 2021 by the National Bureau of Statistics. Nigeria experienced over 5.0% economic growth in the first half of 2021, the growth would continue to accelerate in 2022.
In a report organized and released by a neutral research team, it is estimated that ICT, agriculture and mining would take a large chunk of the total percentage of growth to be experienced in Nigeria as the country continues to grow following the disruption of business by COVID-19. The other sectors that would do well is trading and services rendering.
Where should I invest my money and time in 2022?
Do you have the above question in your mind? If you’re thinking of where to invest your money or which sectors to do business in 2022, consider these areas:
- Agriculture and all agro-allied sectors
- Mining (this sector is still mostly untapped in the country)
- Trading and Distribution of goods (export and import inclusive)
- Services (any kind but we advise you learn digital skills and find ways to bid and get works remotely for other countries–this pays more)
How poor or rich would Nigerians be in 2022?
Notwithstanding that the economy is improving and would continue to improve and expand in 2022, Nigerians and some Africans would get poorer or poor. For Nigerians, two things are more likely to happen–the oil prices would fall and the Nigerian government would remove the fuel subsidy.
At the moment, the buying power of Nigerians is quite low, and according to the World Bank, over 90 million Nigerians out of 200 million live in extreme poverty. These people are part of the families surviving on less than a dollar a day. With the predicted fall in oil and gas price, probable removal of fuel subsidy, the increase in dollar exchange rate, more Nigerians would get poorer and the naira might lose some value. 2022 is definitely the year for poor Nigerians to think of ways of improving their income or seeking better opportunities and jobs.
The Nigerian government’s social and economic policies aren’t helping out either. The school feeding programme, N-Power, and the national fund for poorest of the poor is having no effect on alleviating the plight of the poor Nigerians. More so, the several intervention funds for businesses and enterprises is not having the desired effects it is supposed to have.
My verdict is that for the Nigerian government to get the desired result they seek in the improvement of the economy and the reduction of poverty, then investing in grants and low-interest loans to genuine businesses is better than investing in social intervention projects. If President Buhari’s government had started this business intervention earlier in his administration, the Nigerian economy would have been way better.
So, more Nigerians are expected to slip into poverty even the Nigerian Federal Government had admitted this in one of its press releases in December, 2021.
What should I do as a poor Nigerian to make money or more income?
This is often a source of worry for Nigerians who have low funds or less income on this matter of how would 2022 be like for Nigerians and Africans post. As a poor Nigerian, you can save yourself from slipping into poverty by upgrading to newer, better, and digital skills. Over 20% of Nigerians use smart phones, whether it is old or new, and if you’re one, you can harness it to get yourself away from poverty.
There are digital skills you can learn online and improve yourself even with no money. You only need data and no payment is required in most of them. They are good because you can use them to seek paid full-time employment or bid for jobs internationally or within the country. Some of these digital skills are
- Web designing
- Facebook and Instagram ad placement and optimization
- Content creation
- Video editing and shooting
- Graphics designing
There are also other skills you can learn offline if you have the money for the registration. They are like the online skills, you can get your own jobs or work under someone. These skills are
- Painting and Drawing
- POP Work
- Catering and Decoration
- Wielding and Metal Work
Then, if you’re in paid employment that’s almost as good as being unemployed, you should look for better opportunities or skills to learn that you can add to the minimal income you’re making now. You can choose one of the skills we’ve suggested.
What investments should I avoid in 2022?
The economy would still be hard for a majority of Nigerians in 2022, thus, most Nigerians would be looking for any opportunity to make extra income, and in so doing fall into the hand of fake businesses and investments. Many Nigerians fell into the hands of these scammers in 2021.
You should not fall into the hands of scammers in 2021. We know you would want another source of income, another avenue to create wealth, and through it, solve your numerous needs. Please, you should not do these below to avoid losing your money:
- Investments or businesses that promise above 3% profit monthly for your invested money is most probably a scam.
- Investments or businesses that have no physical products or services rendered is most possibly a scam.
- Any one that hasn’t been existing for long, like 5 -10 years or more is possibly a scam.
- The one that’s not registered with Nigerian SEC has higher possibility of being scam. However, there are ones that aren’t registered that are genuine, but you’ve to trust the ones that are registered more.
- You shouldn’t make any investment or business plan because someone you know is succeeding from it. NO.
What investment or business should I do in 2022?
If this question is important to you then I think this section of this post should help you out in making the right investment decision. Of course, you only think of this option when you have the money. Like enough money (500,000 naira/$1200) or above.
Then you should consider choosing any of these to buy or do:
- Land and real estate
- Agriculture and agro-allied industries
- Eatery and restaurants
- Fashion designing
- ICT – Website, app, software and other ICT related businesses.
- Content creation and influencing on Social Media and YouTube
What are the Government Financial Policies to expect in 2022?
The Nigerian government have often been criticized by Nigerians for not doing enough for the people. They have also been criticized by the world bodies for not following the good and assured government policies. So, what are the government policies to expect in 2022 and how would they affect you as a common Nigerian?
1. Increased Taxation
You should expect the government to go on a frenzied search for more funds for its projects and expenses since oil revenue is dwindling. Even though since 2010 Nigerian government has tried to diversify the economy away from oil, it hasn’t been much of a success. World Bank quoted in All Africa reports that 65% Nigerian live below poverty and more are set to slip into poverty as the economy’s dependence on oil gets sour. Nigeria’s reform of the oil and gas sector in terms of policies such as improved transparency has not paid off yet.
Therefore, the government is losing its full capacity oil production and the likely fall of oil prices is set to put Nigerian government in a fix. Furthermore, with increased debt and debt servicing, the country would take every avenue to tax its citizen. Right now Nigerians are paying 7.5% VAT, stamp duty, land use charge, import duty, vehicle levy, government-enabled bank charges and others; more are likely to come.
2. Full or Partial Removal of Fuel Subsidy
There would be a full or partial removal of subsidy thus making it possible for increase in transportation fare, prices of foodstuff in the market and increase in some service delivery and goods. The government is short of funds and is bent on exploring this idea. The Federal Ministry of Finance stated that if it is not done, most states cannot pay salaries.
3. States’ Improved Autonomy
More financial bouyant states would begin to seek more autonomy in 2022. Rivers State is almost successful with the VAT struggle with Federal Government. In 2022, more states would demand for improved autonomy.
4. Improved Funding for Agriculture and Agro-allied Industries
With the continuous need and focus of government on diversifying the economy, there would also be the continuous focus on expanding the agricultural capacity of Nigeria. The government is seeking on targeting one exportable product per state. Agriculture would definitely get more funding. There will be better food production and enough food in 2022, although it would remain expensive for the poor masses.
Since it is close to the electioneering year, government might do its best to tackle inflation. The government’s policies on tackling inflation might work or not depending on if they carry on with the proposed removal of the fuel subsidy. If fuel subsidy is removed with no intended economic shock absorber for Nigerians, the inflation would sky-rocket and may hit 18.5% or more than again.
There are also other policies to be witnessed in 2022 by Nigerians such as the continuous investment on infrastructure like roads, bridges, railway and education. The school feeding program might be truncated towards the end of the year or beginning of next year. The business and social intervention fund would continue until the end of the year, at least.
The Concluding Point
The main point to bear in mind in this how would 2022 be like for Nigerians and Africans post is that the Nigerian and African economy is still recovering from COVID-19. COVID-19 won’t be much of a challenge in 2022. However, there would still be suffering and poverty for Nigerians and a majority of Africans.
You cannot wait for the government give you 100% facilities and comfort you need. You need to make moves to survive and escape the ravaging poverty in Nigeria and the rest of Africa. So, the best decision for you is making plans which would protect you from the harsh economic policies and happenings. You should try and improve your income, avoid bad investments and businesses, and if you have enough, you should ensure you make the right investments.