Presidency reacts to Nigerian economy being out of recession

President Muhammdu Buhari and Vice President, Yemi Osinbajo at the FEC meeting on the 22nd of March 2017
[Photo Credit: Novo Isioro]
President Muhammdu Buhari and Vice President, Yemi Osinbajo at the FEC meeting on the 22nd of March 2017
[Photo Credit: Novo Isioro]

The Presidency on Tuesday said the Buhari administration welcomes news of Nigeria’s exit from recession with “cautious optimism and will continue to drive Nigeria’s economic growth by vigorously implementing the Economic Recovery & Growth Plan launched earlier this year by President Muhammadu Buhari.”

The stance was contained in a statement sent to PREMIUM TIMES by Laolu Akande, spokesperson to Vice President Yemi Osinbajo.

PREMIUM TIMES reported how data by the National Bureau of Statistics show that the Nigerian economy is out of recession.

The presidency’s statement quoted the Special Adviser on Economic Affairs to the President, Adeyemi Dipeolu, as saying, “The figures released by the National Bureau of Statistics for the second quarter of this year (Q2 2017) show that the economy grew in Q2 2017 by 0.55% from -0.91% in Q1 2017 and -1.49% in Q2 2016.  This in effect means that the Nigerian economy has exited recession after five successive quarters of contraction.”

Read the full presidency statement below:

The Buhari administration welcomes news of Nigeria’s exit from recession with cautious optimism and will continue to drive Nigeria’s economic growth by vigorously implementing the Economic Recovery & Growth Plan launched earlier this year by President Muhammadu Buhari.

The overall economic plan and direction of the administration has resulted, among others, in sustained restoration of oil production levels, (occasioned by the enhanced security and stability in the Niger Delta) sustained growth in agriculture, mining and the first growth recorded in industry as a whole in the last nine quarters since Q4 2014.

BELOW IS A STATEMENT BY SPECIAL ADVISER ON ECONOMIC AFFAIRS TO THE PRESIDENT, DR. ADEYEMI DIPEOLU ON THE 2ND QUARTER 2017 FIGURES JUST RELEASED BY THE NATIONAL BUREAU OF STATISTICS

“The figures released by the National Bureau of Statistics for the second quarter of this year (Q2 2017) show that the economy grew in Q2 2017 by 0.55% from -0.91% in Q1 2017 and -1.49% in Q2 2016.  This in effect means that the Nigerian economy has exited recession after five successive quarters of contraction.

This positive growth is attributable to both the oil and non-oil sectors of the economy.  Growth in the oil sector which has been negative since Q4 2015 was positive in Q2 2017.  It rose by 1.64% as compared to -15.60 in Q1 2017, an increase of up to 17 percentage points.  This improvement is partly due to the fact that oil prices which have improved slightly from the lows of last year have been relatively steady as well as the fact that production levels were being restored.

The non-oil sector grew by 0.45% in Q2 2017, a second successive quarterly growth after growing 0.72% in Q1 2017.  This increase which was not quite as strong as it was in Q2 2016 reflects continuing fragility of economic conditions.  However, given that nearly 60% of the non-oil sectors contribution to GDP is influenced by the oil sector, growth in the oil sector will help boost the rest of the economy.

The positive growth seen in agriculture when the rest of the economy was contracting was maintained at 3.01% which is encouraging especially if seasonal factors are taken into account.  Manufacturing growth was also positive at 0.64% and although lower than the previous quarter’s growth of 1.36%, it was a noticeable improvement over the -3.36% experienced in Q2 2016 and a continuation of the turnaround of the sector.  Solid minerals which remain a priority of the Administration also continued to grow and in Q2 2016 by 2.24%.

Overall, industry as a whole grew by 1.45% in Q2 2017 after nine successive quarters of contraction starting in Q4 2014.  This positive development was somewhat overshadowed by the continued decline in the services sector which accounts for 53.7% of GDP.  Nevertheless, electricity and gas as well as financial institutions grew by 35.5% and 11.78% respectively in Q2 2017.

The GDP figures give grounds for cautious optimism especially as inflation has continued to fall from 18.72% in January 2017 to 16.05% in July 2017.  Foreign exchange reserves have similarly improved from a low of $24.53 in September 2016 to about $31 billion in August 2017.  In the same vein capital importation grew by 95% year-on-year driven by portfolio and other investments but also notably by foreign direct investment which increased by almost 30% over the previous quarter.

Foreign trade has also contributed to improving economic conditions with exports amounting to N3.1 trillion in Q2 2017 while imports which increased by 13.5% amounted to N2.5 trillion in the same period.  The overall trade balance thus remained positive at N0.60 trillion.

Unemployment however remains relatively high but job creation is expected to improve as businesses and employers increasingly respond more positively to the significantly improving business environment and favourable economic outlook.

Besides, as key sectoral reforms in both oil and non-oil sectors gain traction, the successful implementation of ERGP initiatives such as N-Power and the social housing scheme will boost job creation.

Food inflation also bears watching as it has remained quite high and volatile due mostly to high transport costs and seasonal factors such as the planting season. Investments in road and rail infrastructures, increased supply and availability of fertilizers and improvements in the business environment should contribute to the easing of food prices.

Overall, the end of the recession is welcome but economic growth remains fragile and vulnerable to exogenous shocks or policy slippages.  Accordingly, it remains essential to intensify efforts going forward on the implementation of the ERGP to achieve desired outcomes including sustained inclusive growth, further diversification of the economy, creation of jobs and improved business conditions.”


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  • Jon

    Buhari is a racist bigot, ethnic bigot and very vindictive and therefore, does not deserve to be President of a multi-ethnic Nigeria.

    Moreover, People of Southern Nigeria and Middle Belt are calling for RESTRUCTURING. So, Buhari, why are you and your Hausa/Fulani North afraid of restructuring?

    • Rev

      Honestly for the first time since I can recall, a large portion of Nigerians from the South across board are actually tired of the Nigerian arrangement. And this was brought about singlehandedly by Buhari. It has become 100 % obvious that the fulani DO NOT belong to the rest of the country. They are different. I hate to say this. But the British government saw this unworkable country and still allowed it, knowing it was the best possible arrangement to give them guaranteed access to the resources of the new nation…Fifty years later, millions dead our of war, coups, austerity measures, World bank induced economic collapse, fulani Hausa domination and still the same story. Nigerians are tired of the same story for over fifty years!!!

  • Ade-Lijadu

    DEAR EDITOR,

    Nigeria’s economic recession is symptom of state failure

    Today, under the useless and shambolic APC government there are now 28
    million un-employed youths in Nigeria; just roaming purposelessly inside
    Nigeria to beg for food – a staggering figure equal to the entire population
    of Ghana; a neighbouring West African country, according to latest official
    bulletin issued by the Nigerian Bureau of Statistics.

    Today’s un-employment figure in Nigeria under the APC government is over 50%
    of the entire population of Nigeria at independence in October 1960. As it is, the
    28 million jobless youths in Nigeria are no longer waiting to be preached to;
    or taught to be patient by those robbing the treasury in government state
    houses.

    The youths are bracing for
    pistols, rifles and revolvers, to impose a mob solution on a dysfunctional Nigeria.
    Blood flows in Ikorodu in Lagos state in a bloodbath to mirror the carnage in
    Borno state. It matters not the motive of each gang. What’s key is that
    Nigeria is the common target. A country that forces its youths to arm
    and kill for survival or for political choice or economic grievance
    will sooner or later have Biafra all over the place.

    • D. Janehiro

      @disqus_espFyM0fdP:disqus : I AM SCARED
      AND WORRIED THAT NIGERIA COULD IMPLODE INTO UN-CONTROLLABLE VIOLENCE
      BECAUSE BUHARI’s GOVERNMENT simply CANNOT SOLVE 28 MILLION JOBLESS YOUTHS.
      THE IMMEDIATE FUTURE OF NIGERIA IS NOW AT RISK. ONCE BUHARI STEPPED ON THE
      SLOPE OF DEVALUATION OF THE NAIRA AND hiked PETROL PRICE, IT FOLLOWS THAT
      FACTORY INPUTS, RENT AND OVERHEAD COSTS WILL RISE SO HIGH AND THEN cause
      private COMPANIES TO RETRENCH WORKERS en masse SO AS TO CUT COSTS.

  • Suleiman Alatise

    Very bad news for scavengers, but no going back to Egypt, kudos to the government.

    • Tommy Soto

      LOL!

  • Dr Pat Kolawole Awosan

    Finally, Nigeria is out of the deep-recession quagmire as the monetary policy as well as the economic policy of the president Muhammadu Buhari,s finance minister,Mrs Kemi Adeosun and CBN governor,Godwin Emefiele, must full support the reduction of the 14% interest-rate down to a single-digit of 9% and these effort with the supplementary support of the anti-corruption war, will drive the economic-strength and grow the economy.
    FGN. must focus our capital funds on the vigorous development of attaining regular power supply and next after that must be development of modernize medical facilities in all thirty states and Abuja, to ease the rising premature death of our youths and middle-ages.

  • tsunami1earthquake

    Statistics? Forget about it! Statistics are usually the foot-soldier of propaganda. I can set my parameters to what government wants to hear and then build up figures to meet these parameters! That’s what government statistics are all about. Then the listening but gullible public will shout, “Hurrah, a Daniel has come to judgment!”

    As the nation draws closer to the next election in 2019, watch how the statistics of the nation’s economy will be spiking positively to meet the economic standard of Japan, China, South Korea and the US! This fake news would be splashed all over the electioneering campaigns. And, believe me, majority of Nigerians, zombies in their own right, would be darting about, like testes in their scrotum, singing the praise of Buhari, his government and his political party! Some of these overly gullible Nigerians, we call, “mugu”, in local parlance, would even want to give their lives for Buhari and his party to win again!

    And then, when the party returns to power, these same party members would scratch their heads and say that they suddenly remembered that money Jonathan stole in 2013, yes, that money has killed the nation’s economy, and that’s why we can no longer maintain an economy that could make us redeem our campaign promises. And these ‘mugus’ would shout, ‘yes, yes, it is true, we know that Jonathan stole a lot of money. Let’s pray that Heavens help us to get out of this economic quagmire.’ These ‘mugus’ would have suddenly forgotten that few weeks earlier, during the electioneering campaign, the Nigerian leadership had declared that Nigeria’s economy had become as strong as those of the above-mentioned Asian countries and America! Thanks to the National Bureau of Statistics and their quintessential ability to manipulate figures to suit any purpose.

    Nigerians, ‘shine’ your eyes!

    • abodes_124

      May I disagree with you sir. Of course statistics can be played with to some extent but essentially it a collection of objective data . The Nigerian Bureau of statistics has rigorously maintained its independence and this government so far has not tried to replace the professionals there with party sycophants. It is a good source to check up for both current and historical data when propagandists are spewing out false statements like the ‘rot’ of the Jonathan era. You will find that their data, projection and analysis match those from the ADB, World bank and the international Economic intelligence unit. So, please if they say that we are out of recession as per Q” of 2017, i believe them. The original projection was for this to happen in Q1 of 2017 but we did not make it.

  • Dazmillion

    I can picture Lai Mohammed milking the hell out of this “out of recession” news. Next he will tell us it was all down to Buhari’s hardwork from his sick bed in London and he should be given another 4 more years to consolidate the economy.

    • abodes_124

      Very good sober comment on the return to positive GDP growth. It will be helpful if such announcements are given to Adeyemi rather than the likes of Lai , Adesina, Garba or Lauretta Onochie who will colour it with hyperbole leading to adverse comment and criticism. It is noteworthy that the world bank estimates that our actual GDP per capita will remain negative until 2020 because of accelerating population growth.

  • Al

    Bad news for saboteurs

    • Tommy Soto

      Emefiele was the chief saboteur until there was loud calls from the public for his sacking a few months ago, then reversed his clandestine policy.

  • Wale

    I sincerely hope that President Buhari will not accept this fraudulent claim. Nigeria has witnessed economic downturn from middle 1980s when it was almost 1 Naira to 1 Pound Sterling till now that it is N477 to 1 Pound Sterling. Since 1985, unemployment, massive brain drain, decaying infrastructures, mass poverty and all indices of economic decline have continued. Lying about this reality with a thoughtless statistics is like telling Nigerians that this is a clueless and unserious Government because this problem is not the type that can be swept under the carpet by lying. The Director General who brought out this Statistics is a very irresponsible person and he should be sacked. We don’t need this type of bad adviser. The Buhari Government should face the problems squarely and surmount the challenges blocking our way from transiting from a Consumption oriented economy that depends solely on Foreign Exchange from sold Crude Oil to a Productive Economic System. One of the key problems that must be addressed for us to reverse this economic decline is supply of Electricity. If we don’t deregulate the Energy sector we will continue to pump money and be fed with excuses by the other brainless experts in the energy sector who cannot reason outside the box. We must pursue strategic provision of Infrastructures so that we can secure Investors in productive economic activities. It is after we have achieved this that we can start talking about recovery from over three decades decline in the economic fortune of this country. This Director General should be sacked so that other thoughtless Public Office Holders in this category will think twice before uttering useless statements

    • Rev

      This guy you trust this your Oga Buhari…o! What a hopeless optimist. Well done.

  • Agba

    FAKE NEWS

  • Okokondem

    I think everyone should read this.

    Buhari: Nepotism Smelling All Over Nigeria – By Dr. Junaid Mohammed

    “Let me say straight away that whether one calls it a cabal or a mafia or power within the presidency under
    Buhari, whatever you say it is; it is, and a lot worse. First, the most influential person in the presidency today is one Mamman Daura whom as you know, is a nephew of the president. His father was Buhari’s elder brother. In addition, Mamman Daura was the one who single-handedly brought up Abba Kyari, the current chief of staff to the president.
    In fact, Abba Kyari knows Mamman Daura more than he knows his own father.

    “Next, the personal assistant to Buhari himself is the son of Mamman Daura, next is the State Chief of Protocol
    (SCOP), and is also a son-in-law to Mamman Daura because he is married to Mamman Daura’s daughter.

    Next, the minister they unilaterally chose, against the interest of the party and against the wishes of
    Sokoto people, happens to be the daughter of the younger sister of Mamman Daura’s wife. Both of them are daughters of Sultan Dasuki, who was sacked by General Abacha. We have the aide-de-camp to Buhari himself, Colonel Abubakar. He is married to the granddaughter of one of Buhari’s elder sisters.

    Next we have the woman who represents Kaduna in the Federal Executive Council, she is a cousin to Kaduna State
    governor, Nasir el-Rufai. It is a well known that el-Rufai is one of the closest governors to Muhammadu Buhari.

    “Next, we have the Minister for the Federal Capital Territory (FCT). The Minister of the FCT is the man
    called Musa Bello, who used to be the Managing Director of the Northern Nigeria Development Corporation, which used to be the biggest holding company that belonged to all the northern states. His only qualification to be the FCT minister is the fact that his father has been Buhari’s friend over the years.

    Now, there is a young man called Sabiu Yusuf, nicknamed Tunde – probably because of the late General Tunde
    Idiagbon. He is another PA to President Buhari. He is also a grandson of another sister of Buhari.

    “This is enough to prove to you that this is shamelessly the worst form of nepotism in the history of
    government in Nigeria. In fact, in the history of Africa, let me make bold to assert that I have never seen any level of nepotism that has equalled or surpassed this in my entire life – I am now in my 67th year. Another thing I also want you to know is that Amina Zakari, who was and is still a national commissioner in the Independent National Electoral Commission representing the entire seven states in the North-west; it is being claimed that Buhari knows nothing about her appointment (before he became the president), it is a lie.

    “When President Goodluck Jonathan was reorganising INEC and he was bringing in Prof. Attahiru Jega, he reached
    out to Buhari and asked him to nominate somebody from the North-west so that, that person would be a national commissioner. Of all the people in the North-west, Buhari decided to nominate his own niece, the daughter of his elder sister – Amina Zakari. She has been there; when Jega left, Buhari was determined to make her the chairman, it was because of the massive backlash that he dropped the idea like hot potatoes. As we are talking today, that woman
    is a national commissioner which means she is one of the principal members of the election umpire.

    “Throughout my reading of history, political science and social sciences generally, I have never heard of
    any dictator or any tyrant under any system of government whether totalitarian or fascist, appointing his own niece to conduct elections in which he was either a party or going to be a party to; Buhari has done that.

    The immediate younger brother to Amina Zakari is currently the Minister for Water Resources representing Jigawa
    State in the same Buhari government. In addition, even though they are from Kazaure, Kazaure is contiguous to Daura. The eldest sister of both of them is now the Commissioner for Education in the All Progressives Congress government in Jigawa State. If this is not nepotism, then I don’t know what nepotism is.

    For somebody who had the guts and the brutal arrogance to appoint these relations, not bothered about public
    opinion, about the sense of justice, and about competence, then you can see that he has a very serious question to answer.”

  • Mufu Ola

    Some people are permanently in recession all their lives.Even if all indices point to hyper bouyancy,u will still hear “things are bad”! There’s no time ” things” are good for them.

  • Rev

    This government, just like every corrupt Nigerian government PDP or A PC are reviewing their numbers upwards knowing that election is approaching. Dont be surprised.