The Nigerian economy, reputed to be the largest in Africa, has finally grown out its worst recession in 29 years, the National Bureau of Statistics declared on Tuesday.
The NBS on stated that Nigeria’s Gross Domestic Product grew by 0.55 per cent (year-on-year) in real terms in the second quarter (Q2) of 2017, indicating that the economy has grown out recession. The Bureau in its report released on Monday, noted that the economy recorded a positive growth after five consecutive quarters of contractions since Q1 2016.
The 0.55 per cent growth recorded is 2.04 per cent higher than the rate recorded in the corresponding quarter of 2016 where a contraction of -1.49 per cent was recorded, and the quarter-on-quarter, real GDP growth was 3.23 per cent.
According to the NBS report, “During the quarter, aggregate GDP stood at N26,986,005.20million in nominal terms, compared to N23,547,466.91 million in Q2 2016, resulting in a Nominal GDP growth of 14.60 per cent.”
The oil sector was estimated to have averaged at 1.84 million barrels per day, which is 0.15 million barrels higher than the daily average production recorded in the first quarter.
The non-oil sector, which was driven by agriculture, finance and insurance, electricity, gas, steam and air-conditioning supply and other services grew by 0.45 per cent in real terms. This is 0.83 per cent higher than the rate recorded in second quarter 2016 and -0.28 per cent lower than the rate recorded in first quarter of 2017.
Earlier in the year, the Statistician General, Yemi Kale, in an interview with Bloomberg had hinted that the Nigerian economy could exit recession in June 2017.
Kale said. “Intuitively, we might be getting out of recession in the second quarter but I can’t say until all the numbers are in. If it doesn’t happen in the second quarter, it will be a much reduced negative and it will definitely happen in the third quarter unless we have a new round of shocks in the later weeks.”
An economy is said to be in recession after contracting for two consecutive quarters. The Nigerian economy slipped into recession in the first quarter of 2016.