The National Bureau of Statistics has announced the possibility of an expansion of the Nigerian economy in the second quarter. This is attributable to increased output of production in the country’s oil and agricultural sector.
The Statistician-General of the country, Yemi Kale revealed this in an interview. “Intuitively, we might be getting out of recession in the second quarter, but I can’t say until all the numbers are in,” he said.
Nigeria’s economy, which vies with South Africa’s to be the continent’s largest, shrunk by 1.3 percent in the fourth quarter of 2016, after contracting by 2.2 percent in the previous three months, partly due to a fall in the price and output of oil, the country’s biggest export. That translated into the West African nation’s economy shrinking by 1.5 percent in 2016, the first full-year contraction in a quarter century.
The World Bank in a recent report said “Militants’ attacks on oil pipelines in the country have decreased. The economic recession in Nigeria is receding. In the first quarter of 2017, GDP fell by 0.5 percent (y/y), compared with a 1.7 percent contraction in the fourth quarter of 2016”.
In the second quarter of this year, the World bank also said “Nigeria is forecast to go from recession to a 1.2 percent growth rate in 2017, gaining speed to 2.4 percent and 2.6 per cent economic growth for the Sub-Saharan African region in 2018”.
The Chief Executive Officer of the National bureau, Kale, added that “of the six industries that make up more than half of the economy, manufacturing and farming will grow in the second quarter, trade and real estate will probably contract, while crude and telecommunications might shrink or expand marginally”.
The National Bureau of statistics plans to release its second-quarter GDP report by Sept. 4, 2017.