Nigeria's economic recession is finally over

Enhanced purchasing power key to economic recovery

The central bank halved its GDP growth forecast for the year to 0.5 per cent in July.

It was Nigeria's worst recession in 29 years.

Africa's most industrialised economy entered recession in March after two consecutive quarters of contraction, but growth in agriculture in the three-months to end June supported a recovery.

Oil accounts for the bulk of Nigeria's foreign earnings and government revenue.

Gross domestic product advanced 2.5 percent sequentially in the second quarter, reversing a 0.6 percent fall in the fourth quarter, which was revised from a 0.7 percent decline reported earlier. The mining and quarrying industry increased by 3.9%, and contributed 0.3 of a percentage point to GDP growth.

The nation's economic woes were exacerbated by militant attacks on key oil infrastructure in the restive Niger delta, slashing output.

The Federation of South African Trade Unions (Fedusa) also welcomed the improvement in GDP, but was concerned that growth was still below targets of the National Development Plan (NDP).

The non-oil sector did chip in with its own growth as well.

Electricity and gas up 35.5 percent in 2Q.

Finance, real estate and business services increased by 2.5% after contracting in the first quarter, and contributed 0.5 percentage points.

Manufacturing also posted relatively decent figures.

Agriculture grew 3.01 per cent in Q2 2017, from 3.39 per cent in Q1 2017.

"You can see that there have been improved performances in non-oil sectors in the second quarter", said Bismark Rewane of the Lagos-based Financial Derivatives Company.

Oil production during the quarter was higher by 0.03 million barrels per day relative to the corresponding quarter in 2016, which recorded an output of 1.81mbpd.

Under President Muhammadu Buhari who took over from Goodluck Jonathan in May 2015, Nigeria has been painstakingly working at diversifying its sources of revenue.



Other news