After experiencing a few quarters of negative growth that led to the death of businesses, Nigeria’s economy, according to World Economics, has come out of recession even though “conditions remain difficult for businesses”.
This was made known on Tuesday by the London-based organisation dedicated to producing financial analysis, insight and data relating to questions of key importance to the world economy.
A publication on its website has it that “April Sales Managers’ Index (SMI) data suggests that the Nigerian economy is continuing to grow out of the recession which saw 10 months of consecutive contraction in 2016.
“The Market Growth Index grew to 58.5 in April as the monthly Sales Growth Index ticked up to 56.7, its highest value since 2015 and representative of rapid growth. Price inflation for April, which is tracked by the Prices Charged Index, remained high at 58.7 – indicative of high levels of inflation – however, a slowing trend has developed for the past 9 months.
Nigeria’s economy receded at the end of Q2 in 2016 after falling oil prices ate deep into the country’s earnings and caused the naira to weaken thereby causing inflation to spiral upward. Spates of attacks on oil installations in the Niger Delta by militants, who were protesting for better deals from the government, almost crippled oil production.
But the government’s recent engagements in the oil-rich region, spearheaded by the Vice President, Prof. Yemi Osinbajo, has seen attacks on oil facilities petered out, at least, for now.
The National Bureau of Statistics, NBS, had last Thursday stated that the inflation rate dropped by 0.52 per cent in March to close at 17.26 per cent, the second decline recorded in two months.
NBS said in its report, “This is the second consecutive month of a decline in the headline CPI on a year-on-year basis.
“It represents the effects of stabilising prices in already high food and non-food prices as well as favourable base effects over 2016 prices.”
But World Economics pointed out that there are still issues which those in charge of the Nigerian economy need to fix before the economy can get out of the woods.
“Panellists have explained that although conditions remain difficult for businesses, they are adapting to the challenges and the recent changes to the Naira’s FX rate are aiding sales transactions,” it said.
The Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Rafiu Ibrahim had stated that the current monetary policies put in place by the Central Bank of Nigeria, CBN, would lead the country out of recession.
Ibrahim, who represents Kwara South senatorial district made the assertion during the special Easter prayers session organised by the Christian Association of Nigeria, CAN, to mark this year Easter celebration.
According to him, “The new efforts have started yielding positive effects in the economic stability of the nation’s currencies that would go a long way of accelerating the socio economic growth of the country.
“The CBN is currently working tirelessly to stimulate the economy through its current economic policies management.”