10 things you need to know about Nigeria's improved economy
Business & Economy section is provided to you by Jiji.ng — #1 Nigerian online marketplace
Visit website

10 things you need to know about Nigeria's improved economy

Presidency on Thursday, February 21, released a full report on the improvement recorded in the economic sector of the country by the President Muhammadu Buhari-led administration.

The 10-point statement, which was posted on the Facebook page of Femi Adesina, the special adviser to the president on media, was based on the fourth quarter report on the 2018 Gross Domestic Product (GDP).

The report, which was released recently by the National Bureau of Statistics (NBS), has been described by the presidency as" lots of cause to cheer. "

READ ALSO: NAIJ.com upgrades to Legit.ng: a letter from our Editor-in-Chief Bayo Olupohunda

Below are salient points to note from the report as released by the presidency:

1. The economy has recorded continued progress since it emerged from recession in 2017. Current result shows a Real GDP growth of 2.38% compared to 1.81% in Q3 last year, representing the strongest growth since the economy slipped into recession in 2016.

2. For more than five decades, Nigeria has paid lip service to diversifying the economy, from sole dependence on oil. The latest result shows that economic growth has continued to be driven by the non-oil sector, which grew by 2.70% in Q4 2018, up from 2.32% in Q3 2018. It represents the strongest growth in the sector since Q4 2015.

3. The non-oil GDP growth was driven by quarrying and other minerals, followed by telecommunications, agriculture, manufacturing, and construction. That is diversification in progress, real time, no matter what the naysayers may say.

Presidency releases full statement on 10 things you need to know about improved economy

The graph showing the improved economy under the President Buhari-led administration
Source: UGC

4. While the non-oil sector actually drove GDP growth, the oil sector contracted with crude oil and gas GDP reducing by -1.62%. This shows that with good governance, focus, prudence and accountability, the life of the country need not depend on oil ad infinitum.

5. The NBS report further shows that services GDP growth recorded its best performance in 11 quarters, growing by 2.90% compared to 2.64% in Q3 2018 and 0.10% in Q4 2017. Overall, while growth in the economy was moderated by the contraction in the oil sector, 39 out of 46 economic activities recorded positive growth in the quarter under review.

6. The improved GDP growth can be attributed to government's continuous implementation of the policy initiatives in the Economic Recovery and Growth Plan (ERGP), which has boosted the performance of the non-oil sector.

7. The growth in Q4 2018 GDP is consistent with the improvements in other macroeconomic indicators, including inflation, capital inflows, foreign trade, external reserves, amongst others.

8. Headline inflation has been trending downwards from 18.55% as at December 2016 to 15.37% in December 2017 and further to 11.44% in December 2018.

9. The total value of capital importation into Nigeria stood at $2,140 million in the fourth quarter of 2018. This translates to a full year capital inflow of $16,812 million compared to $12,228 million in 2017.

10. Although the economy is now growing, more still must be done to deepen its diversification and make it less vulnerable to external shocks. That is an unflinching commitment of the Muhammadu Buhari administration.

PAY ATTENTION: Download our mobile app to enjoy the latest news update

Meanwhile, Legit.ng previously reported that a new report by a multi professional service network, Price waterhouse Coopers, popularly known as PwC had predicted that the Nigerian currency might suffer a drop in value between the range of N390 to N415 to a dollar by 2019.

While predicting that an unpredictable change in the oil market might crash the value of naira to dollar at the foreign exchange floor, PwC, in its report titled 'Nigeria Economic Outlook Top 10 themes for 2019' disclosed that foreign market might be stable depending on the global oil value.

NAIJ.com (naija.ng) upgrades to Legit.ng to serve its readers better. Great Journalism!

inister of industry says economy is improving; Nigerians disagree | Legit TV

Source: Legit

Mailfire view pixel