Nigerian economy improved slightly in 2016, but remains in recession — NBS

Nigerian economy improved slightly in 2016, but remains in recession -- NBS [Photo Credit: naija247news.com]

The Nigerian economy contracted by -1.15 per cent in 2016, but showed slight improvement overall, the National Bureau of Statistics said Tuesday.

In its latest report, the NBS said the Gross Domestic Product contracted by -1.51 per cent, slightly better than the International Monetary Fund’s prediction of a -1.8 per cent contraction.

The statistics agency said the GDP in the last quarter of 2016 contracted by -1.30 per cent.

“For the full year 2016, therefore GDP contracted by -1.51 per cent, indicating real GDP of N67, 984.20 billion for the year,” the NBS said.

“This contraction reflects a difficult year for Nigeria, which included weaker inflation-induced consumption demand, an increase in pipeline vandalism, significantly reduced foreign reserves and a concomitantly weaker currency, and problems in the energy sector such as fuel shortages and lower electricity generation.”

President Muhammad Buhari’s special adviser on economic matters, Adeyemi Dipeolu, said the new figure shows “the slow-down in the economy for most of 2016 but also show that the recession may have bottomed out because of an improving trend in several key sectors.”

“Although the oil sector declined by -12.38% on a year on year basis, this was a relative improvement compared to the third quarter when the decline amounted to -22.01%,” he said. ” This outcome was due mainly to increases in production such that the quarter on quarter growth for the oil sector between the third and fourth quarters was 8.07%. The non-oil sector however declined by 0.33% after showing some resilience in the third quarter when it grew by 0.03% at the height of the recession.”

Agriculture grew at 4.03% in the fourth quarter of 2016 which was a decrease from the 4.54% growth in the third quarter.

Nevertheless, the overall outcome for the year was that the agricultural sector grew by 4.11% for the whole of 2016 which was higher than the figure of 3.72% for 2015.

The manufacturing sector grew on a quarter on quarter basis by 1.89% but declined over the year by 4.32% reflecting the problems that the sector faced in the course of the year due to a combination of factors including the depreciation in the exchange rate and higher energy costs.

The metal ores sub-sector grew by 7.03% in Q4 of 2016 as compared to 6.93% in the last quarter of 2015.

The services sector, which accounted for 53.55% of GDP in 2016, experienced a decline in growth by -0.82% over the year as compared to a growth of 4.78% in 2015.

“This slowdown in the services sector arose from generally fragile economic conditions,” Mr. Dipeolu said. “This is because its fortunes depend to a large extent on consumer spending and government expenditure which were both adversely affected by difficult economic conditions.”


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  • Jayjay

    PREMIUM TIMES,

    Look, you people, listen to me. Don’t say you are doing freedom of expression with this nonsense
    you are doing to help Buhari look less bad. You are saying economy contracted less than I.M.F
    predicted. What’s the meaning of that? Is economy supposed to contract at all to start with?
    Go to the market and see high cost of goods. You’ll now see that Nigerians will soon revolt.
    Buhari’s government is terrible to me. It is like a genocide government to kill poor people.

    • Facts & Figures

      • Smallest can of Baygon insecticide……………………₦1,000

      •One Bag of Garri………………………………………..₦14,000

      • Rose Carla toilet roll …………………………….₦1, 750 for packet of ten.

      • One gallon of Ceeway drinking water………………..₦500

      • Nkem2

        Follow me, please! Petrol per litre is how much today in Nigeria under BUHARI,
        after Buhari increased the fuel price early last year? It is 145 Naira per litre.
        For 5kv generator, how many litres do you need per day to generate
        your own electricity for just six (6) hours? You’ll need 10 litres.
        That is how much? It is 1,450 Naira per day.

        Now, since the zero megawatts Minister for Power Raji Fashola has no idea of how
        to supply electricity to Nigerians, how much will you need per month, to get six hours of
        private electricity a day for yourself? You’ll need ₦44,500 a month.

        What is the minimum amount you need today to cook a pot of soup for your four children,
        as a family? The minimum is six thousand Naira – with minimum ingredients. So multiply that
        by 15 days, if you will manage the pot of soup for two days. What will you get?
        You will need 90,000 Naira a month to feed a family with four children.

        That means Naira devaluation by President Buhari plus the petrol tax by President Buhari
        have now made life impossible in Nigeria. Just to eat and have six (6) hours electricity for a
        family now cost 133,500 Naira per month, without doing any other thing, not even going out,
        or, even going to school. How many Nigerians earn ₦133,000 per month?

        Answer me, please!

        • Goxy333

          @Jayjay:

          THE NIGERIAN BUREAU OF STATISTICS IS ONLY
          TELLING LIES. THERE CAN’T BE ANY SENSIBLE ECONOMY AT ALL WHEN THERE’S NO
          ELECTRICITY IN NIGERIA. IT DOES NOT MATTER WHAT OIL COMPANIES ARE PAYING AS
          TAXES FOR OIL EXPLORATION. AN ECONOMY IS NOT ROYALTY TAXES – ECONOMY MEANS
          THE FIVE MILLION PEOPLE WHO HAVE LOST THEIR JOBS UNDER THIS BUHARI REGIME. NOW,
          MULTIPLY FIVE MILLION BY FOUR DEPENDENTS AND YOU’LL GET 20 MILLION NIGERIANS
          WHOSE LIVES MAY HAVE BEEN PERMANENTLY DAMAGED BY BUHARI.