Nigeria is finally out of economic recession, according to latest figures from the National Bureau of Statistics (NBS).
It was Nigeria’s worst recession in 29 years.
Africa’s biggest economy officially slipped into recession in August 2016 following two consecutive quarters of negative growth.
The price of crude oil in the global market plunged from previous highs of $112 per barrel in 2014 (for instance) to $50 per barrel between January and July of 2016.
Nigeria’s fortunes dipped on the back of a plunge in oil price in the international market because crude oil sales account for 70 percent of government revenue.
However, latest figures from the nation’s statistics bureau indicates that Nigeria’s GDP grew by 0.55% in Q2 2017 compared to -0.91% (revised) in Q1 2017 and -1.49% in Q2 2016.
Quarter-on-quarter basis, real GDP growth was 3.23%.
Relative stability in the restive Niger Delta region contributed to the upturn in the country’s economic fortunes.
According to the NBS, the oil sector was estimated to have averaged production levels of 1.84 million barrels per day, which is 0.15 million barrels higher than the daily average production recorded in the first quarter of June 2017.
The non-oil sector did chip in with its own growth as well. The Agriculture, Finance and Insurance, Electricity, Gas, Steam and Air-conditioning supply and other services sectors grew by 0.45% in real terms.
This showed a 0.83% increase when juxtaposed with the rate recorded in second quarter 2016 and -0.28% lower than the rate recorded in first quarter of 2017.
Manufacturing also posted relatively decent figures.
For instance, Food, Beverage and Manufacturing grew by 2.67% in Q2 2017 from 4.07% in Q1 2017 and -2.65 in Q4 2016.
However, the Information and Communication sector contracted by -1.15% in Q2 2017 from 2.73% in Q1 2017 and 1.38% in Q4 2016.
The Air Transport and Storage sector grew by 0.15% in Q2 2017 from 1.53% in Q1 2017 and -13.25% in Q4 2016.
The trade sector however contracted by -1.62% in Q2 2017 from -3.08% in Q1 2017 and -1.44% in Q4 2016.
However, Nigeria’s double digit inflation remains. Consumer prices in Nigeria increased 16.05% year-on-year in Q2 2017.
Food inflation remains high with majority of Nigerians still struggling to get by.
Under President Muhammadu Buhari who took over from Goodluck Jonathan in May 2015, Nigeria has been painstakingly working at diversifying its sources of revenue.
The Buhari administration mantra has been: “we must produce what we consume…buy Nigeria to grow the Naira”.