Nigerian government claims economy on its way out of recession

The Nigerian Government says there are indications that the Nigerian economy is well on its way out of recession considering the 2016 overall and last quarter Gross Domestic Product reports.

Referring to a recent GDP figures released Tuesday by the National Bureau of Statistics, NBS, it said that the stats indicate a contraction of -1.30% in the fourth quarter of 2016, translating into an estimated economic growth rate of -1.51% for the full year.

In further analyzing the report, the government held that the economy actually performed better overall last year as the growth rate was higher with a contraction at -1.5% than the -1.8% predicted by the IMF, raising the hope that the recession may have buttomed out with the improving trends in several key sectors of the economy including agriculture and mining.

The Buhari-led administration is also hopeful that with the ongoing series of engagement with the oil-producing communities of the Niger Delta, the increased oil production output would be sustained.

It argued that the ongoing implementation of the Social Investment Programmes, the significant infrastructural spending of the Federal Government, and a possible early legislative passage of the 2017 budget are all expected to spur a positive multiplier effect on the Nigerian economy.

The claims notwithstanding, there are still big concerns over the rate of inflation which has set prices at roof levels and increasingly put basic items out of reach of the mainly poor class.

The level of unemployment, just like inflation, has hit a two-decade high with industrial unions calling for upward review in salaries and payment of backlog of pension benefits.

And, despite slight gains in the value of the nation’s currency, the business outlook remains unstable as there are little guarantees of sufficient earnings from oil to cushion the rising demand in the Forex market.

And, worse still, the agricultural sector on which the government pins  hope of reversing the negative trends in the economy is still low on mechanized farming, leaving production at subsistence level and the mercy of seasonal changes.

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