… Ordinary Nigerians to feel impact – Buhari
…Unemployment should be tackled –NASS
After about 18 months of gruelling economic woes, the Nigerian Bureau of Statistics (NBS) yesterday announced that the country’s worst economic fears were over, as it exited economic recession following aggressive and strategic refocusing of the economy notching up growth of 0.55 percent in the second quarter of 2017.
The Bureau, which had penultimate week said Nigeria posted 16.9 inflation rate, the highest so far, said the country recorded an improved Gross Domestic Product (GDP) year-on-year growth in real terms.
The NBS stressed that the development was clear indication of a revamped economy, adding that it also showed emergence from recession after five consecutive quarters of contraction since Q1 2016.
“This growth is 2.04% higher than the rate recorded in the corresponding quarter of 2016 (1.49%) and higher by 1.46% points from rate recorded in the preceding quarter, (revised to –0.91% from –0.52%). Quarter on quarter, real GDP growth was 3.23 percent. .
“During the quarter, aggregate GDP stood at N26,986,005.20 million in nominal terms, compared to N23,547,466.91 million in Q2 2016, resulting in a Nominal GDP growth of 14.60%. ,” the NBS report stated.
The report lauded managers of the mono-economy which is 70 percent oil dependent for state revenues and 90 percent of export earnings, noting that the introduction of the Economic Growth and Recovery Plan (EGRP) launched early this year by President Muhammadu Buhari, had significantly impacted on the exit from recession.
Impacts of EGRP
The recovery plan had focused on five key areas, including improvement in power, agriculture, solid minerals, transportation and construction and exportation of local goods to ensure inclusive growth that boost production in critical sectors of the economy as well as engender massive employment.
Accordingly, the federal government set out to tackle incessant attacks on oil and gas installations by dialoguing with Niger Delta militants with a view to achieving stability in the downstream and upstream sector, and thus improved on production and earnings from oil.
FG’s 2017 projection
In the 2017 budget, the federal government projected 2.2 million barrels of oil per day based on $42.5, assuring that it would carefully manage available resources to ensure that Nigeria exited recession and achieve inclusive growth.
Buhari assures ordinary Nigerians
In his reaction, President Muhammadu Buhari said the real impact of coming out
of recession would be better felt when ordinary Nigerians experience a change in their living conditions.
Speaking when he received President of Niger Republic, Alhaji Mahamadou Issoufou, at his country home in Daura, the President said he was “very happy’’ to hear the country was finally out of recession, adding that the real gain should be improved conditions for Nigerians.
Responding to questions from newsmen, the President said, “Certainly, I should be happy for what it is worth. I am looking forward to ensuring that the ordinary Nigerian feels the impact.’’
The President commended all managers of the economy for their hard work and commitment, stressing that more work needed to be done to improve the growth rate.
He also said, “until coming out of recession translates into meaningful improvement in peoples’ lives, our work cannot be said to be done.’’
In his remarks, the Nigerien President said he was most delighted to see President Buhari in good health, praying that the almighty God would continue to strengthen him.
The visiting president said he used the opportunity of the visit to discuss some bilateral and regional issues with his host, which included the fight against Boko Haram, the economic challenges in the Lake Chad Basin and other developmental concerns that directly affect the livelihood of the citizens of both countries.
The Nigerien President was accompanied on the visit by a former Prime Minister, Dr. Hamid Algabid, and the President of the Economic, Social and Cultural Council of Niger, Moussa Moumouni Djermakoye.
It’s welcome development – Presidency
Meanwhile, the Presidency has described the cheery news as a welcome of recession exit as a welcome development.
In a statement issued in Abuja, Senior Special Assistant to the President on Media and Publicity in the Office of the Vice President, Mr. Laolu Akande, said government would continue to drive the country’s economic growth by vigorously implementing the Economic Recovery and Growth Plan.
He said the overall economic plan and direction of the present administration had resulted in sustained restoration of oil production levels, growth in agriculture, mining and industry.
The statement read: “The figures released by the National Bureau of Statistics for the second quarter of this year (Q2 2017) show that the economy grew in Q2 2017 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.
“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. Manufacturing growth was also positive at 0.64% and although lower than the previous quarter’s growth of 1.36%, it was a noticeable improvement over the -3.36% experienced in Q2 2016 and a continuation of the turnaround of the sector.
“Solid minerals which remain a priority of the Administration also continued to grow and in Q2 2016 by 2.24%. Overall, 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.
“Unemployment, however, remains relatively high but job creation is 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 fertilisers and improvements in the business environment should contribute to the easing of food prices.
“Overall, the end of the recession is welcome but economic growth remains fragile and vulnerable to exogenous shocks or policy slippages. Accordingly, it remains essential to intensify efforts going forward on the implementation of the ERGP to achieve desired outcomes, including sustained inclusive growth, further diversification of the economy, creation of jobs and improved business conditions.”
Our intervention counts – Senate
Meanwhile, the Senate has said the confirmation of Nigeria’s exit from recession, is a reflection that the 21 recommendations it submitted to President Muhammadu Buhari in 2016 were yielding results.
Senate spokesman, Sabi Abdullahi, who disclosed this yesterday in a statement made available to journalists, recalled that the improved performance of the trade, manufacturing, agriculture and oil sectors was an indication that with carefully aligned policy and legislative interventions, Nigeria’s economy could thrive beyond current forecasts and expectations.
“The Senate received Q2 NBS economic report with great excitement. We are delighted that government’s response to the economic recession has begun to yield tangible results.
“The public will recall that in the days following the announcement of the 2016 recession, the Senate initiated steps and tabled 21 recommendations that it submitted to the executive for immediate action. We also listed out economic priority Bills, many of which have now been passed, or at the final stage.
“We are also happy to note that many of the economic recommendations, specifically in the areas of retooling our agriculture and trade policies were adopted. This shows that the ‘all hands on deck’ approach was necessary from both branches on government,” the Senate spokesman said
‘Unemployment still an issue’
He further noted that though the nation is now out of recession, the Senate remains committed to seeing that the unemployment rate and high cost of living in the country is brought down.
“The rising unemployment in the country is an issue that is of much concern to all of us. Additionally, the rising cost of food prices and basic services in the country still affects millions of households.
“This is why we will continue to work on our laws, specifically in the areas of access to credit to promote more opportunities for small business owners; and opening up more sectors to private sector participation, so that there will be more competition in our markets – which will lead to lower prices.
“We will also continue to work with the executive to ensure that our policy and legislative objectives, specifically as they relate to the economy, are well-aligned,” Abdullahi said.
Result of Executive/Legislature collaboration – Dogara
In a similar reaction, Speaker, House of Representatives, Yakubu Dogara, expressed satisfaction with the progress recorded in the nation’s economy, as released by the NBS.
In a statement by his Special Adviser on Media & Public Affairs, Turaki Hassan, the Speaker, said, the House of Representatives is gladdened by the goodness of the performance of the economy in the last quarter.
He said “this positive result is an indication that the economic policies of the APC administration are on track, and the task ahead is sustained efforts by both the Executive and the Legislature in fast tracking programme implementation for even more rapid economic growth and development.
“We must now channel our energies towards measures aimed at job creation for the millions of our people, address the widening socio-economic inequalities and creating opportunities for all Nigerians
“The House of Representatives will more than ever before step up its partnership with the Executive in this regard by introducing as well as supporting all measures designed to blossom the economy and put food on the tables of all Nigerians.
“This informed the passage of the Federal Competition and Consumer Protection Commission bill which should go a long way in attracting foreign direct investment, create job opportunities for our people and provide healthy and conducive business environment for the private sector to thrive.
“We will implore the President to assent to this revolutionary bill as soon as it is concurred by the Senate and transmitted to him.”
