Nigerian economy finally quits recession

Nigerian economy finally quits recession

Nigeria’s economy has finally quit recession, according to figures released by the National Bureau of Statistics.

The bureau in its Nigerian Gross Domestic Product (GDP) report, said the economy grew by 0.55% in GDP term for the second quarter, after a contraction of one point 49 per cent in the corresponding period in 2016.

According to the bureau the figure indicated that the economy has recorded a positive growth after five consecutive quarters of contraction in the first quarter of 2016.

Reacting to the news, Economic Adviser to the President, Doctor Adeyemi Dipeolu, attributed the exit of the country from economic recession to both the oil and non-oil sectors.

The Buhari administration, according to him, will continue to drive the growth of the economy by vigorous implementation of the economic recovery growth plan launched by President Muhammadu Buhari last January.

He said, “This in effect means that the Nigerian economy has exited recession after five successive quarters of contraction.

“This positive growth is attributable to both the oil and non-oil sectors of the economy. Growth in the oil sector which has been negative since Q4 2015 was positive in Q2 2017. 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.

“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.”

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