Buhari, Osinbajo celebrate Nigeria's exit from recession
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By
EnitinUwant
-
By . | Publish Date: Sep 5 2017 4:31PM

The federal government has welcomed exit of Nigeria from recession, but with caution and optimism.

The federal government has welcomed exit of Nigeria from recession, but with caution and optimism.
It
said it would continue to drive economic growth by vigorously
implementing the Economic Recovery & Growth Plan (ERGP) launched
earlier this year by President Muhammadu Buhari.
A
statement by Mr. Laolu Akande, Senior Special Assistant to the
President on Media & Publicity, Office of the Vice President, said
National Bureau of Statistics broke the news.
He
said: “The overall economic plan and direction of the administration
has resulted, among others, in sustained restoration of oil production
levels.’’
The sustenance, he explained, was made possible because of the enhanced security and stability in the Niger Delta.
He
backed up his statement with that also released by the Economic Adviser
to the President, Dr. Adeyemi Dipeolu, on the analysis carried out on
2nd quarter 2017 economic performance of National Bureau of Statistics
(NBS).
“The
figures released by NBS for the second quarter of this year (Q2 2017)
show that the economy grew by 0.55% from -0.91% in Q1 2017 and -1.49% in
Q2 2016.
“This
in effect means that the Nigerian economy has exited recession after
five successive quarters of contraction,’’ Dipeolu said.
This positive growth was attributable to both the oil and non-oil sectors of the economy, he said.
Growth
in the oil sector which has been negative since Q4 2015 was positive in
Q2 2017 as it rose by 1.64% as compared to -15.60 in Q1 2017; an
increase of up to 17 percentage points.
“This
improvement is partly due to the fact that oil prices which have
improved slightly from the lows of last year have been relatively steady
as well as the fact that production levels were being restored.’’
According
to NBS, the non-oil sector grew by 0.45% in Q2 2017, a second
successive quarterly growth after growing 0.72% in Q1 2017.
“This increase which was not quite as strong as it was in Q2 2016 reflects continuing fragility of economic conditions.
“However,
given that nearly 60% of the non-oil sectors contribution to GDP is
influenced by the oil sector, growth in the oil sector will help boost
the rest of the economy.
“The
positive growth seen in agriculture when the rest of the economy was
contracting was maintained at 3.01% which is encouraging especially if
seasonal factors are taken into account.’’
Manufacturing
growth, he said, was also positive at 0.64% and although lower than the
previous quarter’s growth of 1.36%, it was an a noticeable improvement
over the -3.36% experienced in Q2 2016 and a continuation of the
turnaround of the sector.
Solid minerals which remained a priority of the Administration also continued to grow and in Q2 2016 by 2.24%.
Generally, industry as a whole grew by 1.45% in Q2 2017 after nine successive quarters of contraction starting in Q4 2014.
“This
positive development was somewhat overshadowed by the continued decline
in the services sector which accounts for 53.7% of GDP. Nevertheless,
electricity and gas as well as financial institutions grew by 35.5% and
11.78% respectively in Q2 2017.
“The
GDP figures give grounds for cautious optimism especially as inflation
has continued to fall from 18.72% in January 2017 to 16.05% in July
2017.
“Foreign exchange reserves have similarly improved from a low of $24.53 in September 2016 to about $31 billion in August 2017.’’
“In
the same vein capital importation grew by 95% year-on-year driven by
portfolio and other investments but also notably by foreign direct
investment which increased by almost 30% over the previous quarter.
“Foreign
trade has also contributed to improving economic conditions with
exports amounting to N3.1 trillion in Q2 2017 while imports which
increased by 13.5% amounted to N2.5 trillion in the same period. The
overall trade balance thus remained positive at N0.60 trillion.’’
The
analysis shows that unemployment remained relatively high but job
creation was expected to improve as businesses and employers
increasingly respond more positively to the significantly improving
business environment and favourable economic outlook.
“Besides,
as key sectoral reforms in both oil and non-oil sectors gain traction,
the successful implementation of ERGP initiatives such as N-Power and
the social housing scheme will boost job creation.
“Food
inflation also bears watching as it has remained quite high and
volatile due mostly to high transport costs and seasonal factors such as
the planting season.
“Investments
in road and rail infrastructures, increased supply and availability of
fertilizers and improvements in the business environment should
contribute to the easing of food prices.’’
Dipeolu
said that the end of the recession was welcomed but economic growth
remained fragile and vulnerable to exogenous shocks or policy
slippages.(NAN)
Source: https://www.dailytrust.com.ng/news/general/buhari-osinbajo-celebrate-nigeria-s-exit-from-recession/213047.html
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