Finally, Nigeria Exits Recession, Reports 0.55% GDP Growth in Q2

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• Foreign Exchange liquidity may have helped industries to grow
 
By Obinna Chima 
After contracting for five consecutive quarters, the Nigerian economy has finally exited the recession, as data on the country’s gross domestic product (GDP) growth rate to be released at 10 a.m. today by the National Bureau of Statistics (NBS) has shown that the economy grew at 0.55 per cent in the second quarter (Q2) of 2017.
The preliminary Q2 2017 GDP results, which THISDAY had exclusively obtained from presidency sources, had been embargoed by the NBS at the weekend until the official release of the report today.
But THISDAY decided to go to press last night with the report because Reuters had flouted the embargo.
The Q2 2017 growth rate of 0.55 per cent (year-on-year) was 2.04 per cent higher than the rate recorded in the corresponding quarter of 2016 (-1.49%) and higher by 1.46 per cent points from rate recorded in the preceding quarter, which was revised to –0.91% from –0.52% due to revisions to crude output for March 2017.
According to the preliminary results for the second quarter of the year, Nigeria’s economic recovery was driven principally by the performance of four main economic activities comprising oil, agriculture, manufacturing and trade.
The results revealed that Oil GDP recovered significantly from -11.63 per cent in Q2 2016 and -15.40 per cent in Q1 2017 to 1.64 per cent in Q2 2017.
But while Oil GDP expanded considerably in the second quarter of 2017, Non-oil GDP only grew at 0.45 per cent, down from 0.72 per cent in the preceding quarter and -0.38 in the corresponding period in 2016.
It also showed that agriculture continued its strong and positive growth, which it had maintained throughout the recession, growing by 3.01 per cent in Q2 2017, from 3.39 per cent in Q1 2017 and 4.53 per cent in Q2 2016.
Manufacturing retained its positive growth for the second consecutive quarter in Q2 2017, growing at 0.64 per cent compared to 1.36 per cent in Q1 2017 and -3.36 per cent in Q2 2016, while trade which has a dominant share of GDP remained negative at -1.62 per cent, but the contraction in the sector decelerated from the -3.08 per cent recorded in Q1 2017.
Furthermore, electricity and gas and financial institutions sectors also recorded strong growths, with electricity and gas growing by 35.5 per cent, compared to -5.04 per cent in Q1 2017 and -10.46 per cent in Q2 2016 and financial institutions growing by 11.78 per cent in Q2 2017, compared to 0.60 per cent in Q1 2017 and -13.24 per cent in Q2 2016.
The results also showed that the industry sector grew positively by 1.45 per cent in Q2 2017, after nine consecutive quarters of negative growth since Q4 2014.
As a percentage of GDP, services retained the giant share of GDP at 53.73 per cent in Q2 2017, down by 1.94 per cent points (55.67 per cent) from the first quarter of 2017 and 54.80 per cent in Q2 2016; industries accounted for 23.31 per cent of GDP, compared to 22.90 recorded in Q1 2017 and 22.65 per cent in Q1 2016; while agriculture accounted for 22.97 per cent of GDP in the quarter under review, compared to 21.43 per cent in Q1 2017 and 22.55 per cent in Q2 2016.
  • FrNinja

    Non oil ethiopia and rwanda last year grew at 6% or more based on public and private investment. oil producing Algeria grew at 3%. Buhari and his negative investment policies sent Nigeria into recession.

  • Felicia Akinwale

    Even if we are to believe this, a 1% growth is inconsequential. That is stagnancy to all intents and purposes and mind you, some of these figures get reviewed and corrected later down the line. There is no growth in the purchasing power of the naira because the CBN still officially seels the green back for 360.

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  • Chuka Dennis

    9Ja WIN!
    Everybody win.

  • Netanyahu

    If I doubt this propaganda, they’ll call me wailer. As of yesterday, the cheapest brand of 25kg bag of local rice is N11,000. No price in the supermarket has dropped in the past 6 months, rather they have been going up steadily. A basin of garri that used to be between 2500 & 3000 naira in 2014 now goes as high as 7000 naira. Please my bothers “from another mother”, why do we like deceiving ourselves?

    • David knotkace

      YOU WANT TO TERRORIZE MY NOTIONS??????????????????? THEN TERRORIZE MY NOTIONS YOU UNDERSTAND ME TERRORIZE MY NOTIONS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    • Truth Konveyor

      Tell us when prices of such items have ever fallen in Nigeria. When Jonathan took over in 2010 the price of rice was between N4k and N5k but as of May 2015 it has gone up to between N10k and N12k. Ditto for other commodities. The value of our currency was N22 for a dollar in 1996. In 1999, when Obasanjo took over it was less than N40. By the time Jonathan took over it was less than N90 (these are official rates) but he handed over N198 to a dollar to Buhari. Today it is at N305.
      So my brother, no government in Nigeria has ever brought down prices of commodities they inherited. You should stop making it look like we are in uncharted territory. During Jonathan owing to boom in oil prices, Nigeria witnessed high growth in the economy. But did it reduce price of any commodity from where it was before 2010?

      • Felicia Akinwale

        Abeg where u see dollars at 305, I need some. Pls where can I meet you to change my naira to dollars at 305???? U are as fake as the news Irosina and Garbage shehu spews forth.

        • Truth Konveyor

          You can be forgiven for being ignorant but adding laziness to it portends a grave danger to your essence as a human being. A simple Google search for an official exchange rate of naira would have saved you this public display of instability. You are obviously confusing the parrarel exchange rate (black market rate) which is at N365 today with the official exchange rate which I was using in my intervention.

      • abodes_124

        Your figures are not totally correct

    • abodes_124

      The price of Garri will not necessarily mirror movement of GDP indices

  • Fowad

    Figure crunching to explain economic growth has no meaning in Africa. We have no technology to measure the real economic performance. This is one of the many ways we have continued to deceive ourselves. That was the way Iweala bamboozled us for years. It helps government officials to sit comfortably in their offices churning out lies. They know the people are not so literate and not so interested

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  • 123141

    APC propaganda reloading. Maybe the numbers above relates to another Nigeria not that led by Buhari where an average Nigerian could hardly afford a decent daily meal; where students are wasting at home due to non payment of their lecturers; where resident doctors have just gone on “indefinite strike” for lack of basic tools (I just read thar doctors in Edo State use candle light to do their work!). These are just few of the examples of a country some jokers would want us believe is out of recession. What a joke.

  • D-A-N-G-O-T-E-C-E-M-E-N-T
  • C3kwe

    Lol, another Apc propaganda. Thanks to Liar Mohammed.

    • David knotkace

      BEEF WITH ME WAAAAAAAAAAAAAAHH BEEF WITH ME
      WAAAAAAAAAAAAAAHHHHHHHH……….!!!!!!!!!!!!!!!!!!!!!!!

      • C3kwe

        You are truly a nutcase.

  • disqus_TyeJzkqCGj

    This is what happens when you have a government that knows it’s onions. The readers should note that other countries such as Brazil and South Africa are still in a recession.

    • C3kwe

      Rubbish talk!

    • David knotkace

      YOU WANT TO BEEF WITH ME??????? THEN BEEF WITH ME YOU UNDERSTAND ME BEEF WITH ME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    • abodes_124

      knows its onions. You are joking surely?

  • jide

    is this data actually right??? manufacturing grew slower than the first quarter?? seems unreal.

    • disqus_TyeJzkqCGj

      Yes it is, PMI has grown for two quarters now

  • M-olaniyi Odebode

    Bravo to the Buhari-led APC Government. The administration’s next step is to lay the foundation for Nigeria’s prosperity. Big congratulations to President Buhari and his team. More grease to your elbows.

    • kalu9909

      Why give kudos to President Buhari? Buhari has no hand for this positive turn around. During the period under review, 2nd quarter (April to June), the president was not in the country and he had no input on this positive growth rate. The president was away on medical vacation and should not take any credit. It was the peace that reigned during the time Prof. Osinbajo held sway. Now that the president is back, the build up of strive and heating up the polity will in one way affect the economy leading to contraction. Just watch and see about the report that would come out from NBS in the 3rd quarter.

      • M-olaniyi Odebode

        Recovery from recession is an outcome of an administration’s fiscal policies among other factors. It does not depend on the presence or absence of any particular government officials. We should give kudos to President Buhari and his team for having put in place sound economic policies that led to the nation’s recovery.

        • abodes_124

          Unfortunately the actions or inactions of the president and the central bank governor do impact significantly on the both in the long and short terms.

          • M-olaniyi Odebode

            Right, very right! However, no human, not even the greatest (Nobel Prize-winning) economist in the world can accurately predict any nation’s economic trends and what the effects of interventions acts will be on the economy. Consequently, every nation’s Economic Council must experiment with actions and at times inaction and see the effects before taking another step. Recession does not manifest in two or three years, but six to seven years, after the causal policies are adopted by the government in power. Our own recession manifested some six months earlier because of our non-diversified, oil-based economy and the sharp drops in crude oil prices plus militants-induced production disruptions.
            We can therefore only praise the current administration and its economic team for pulling us out of recession this fast – a recession whose foundation was laid long before Buhari became Nigeria’s president.

          • abodes_124

            So if the trajectory for the recession was set several years ago then the adjustments to allow the present recovery we are seeing must have been made several years ago Pre Buhari .
            No Sir any idiot or group of idiots can crash a country’s economy within months. It is building up the economy that is a long hard slog requiring wise sound picicies applied intelligently. The small shoot of recovery we are seeing is inspite of not because of this cackhanded government
            I do not hope for but will not be surprised if we have a double dip solely because Oga is now back

          • M-olaniyi Odebode

            Please try to read some information on Economic recesion in general.

          • M-olaniyi Odebode

            Please Sir read the following ecxerpt. It is self-explanatory.
            BAD POLICIES LED TO ECONOMIC CRISIS – SOLUDO
            Author: Kess Ewubare UPDATED: 3 MONTHS AGO VIEWS: 58256 Category: Local news

            Chukwuma Soludo says the foundation for recession in Nigeria was laid by the previous administration, which he said, borrowed to fund recurrent expenditure at a time when oil prices was high – Soludo states that Nigeria could overcome the current economic setback faster if the government put in place appropriate policies – The former CBN boss says Nigeria failed to save funds at a time when there was unprecedented boom in oil prices Former governor of Central Bank of Nigeria (CBN), Chukwuma Soludo, has blamed the country economic woes on bad government policies executed in the time of boom. He said that the foundation for the recession was laid by the previous administration, which he said, borrowed to fund recurrent expenditure at a time when oil prices were as high as over 100 dollars to a barrel. Soludo said this on Thursday, May 18, when speaking at the 2017 international conference organised by the department of business administration of Nnamdi Azikiwe University, Awka, Anambra state, The Cable reports In a lecture entitled: “Managing a Recessed Economy”, Soludo said that managing and exiting a recessed economy was not a rocket science. Soludo said Nigeria failed to save funds at a time when there was unprecedented boom in oil prices The former CBN boss noted that Nigeria could overcome the current economic setback faster if the government put in place appropriate policies………….
            You may wish to read the full article @ https://www.naij.com/1105535-bad-policies-led-economic-crisis-soludo.html

      • Truth Konveyor

        Idiot! Who picked Osinbajo as the vice president and set up the entire government machinery? It is a Buhari government: he takes all the blame or credit, as the case may be, for every failure or achievement of his administration.

        • abodes_124

          Who allows us to remain alive. It is Buhari. All praise to him for any positive achievement by any living Nigerian.

    • abodes_124

      foundation stage still after 2 years and 3 months of a 4 year term?

      • M-olaniyi Odebode

        Yes. It is a lot faster and easier to destroy an edifice than to clear up its rubble and then repair or rebuild it. If the current administration can build a solid foundation by the end of its first term, it will be an unparalleled monumental achievement.

        • abodes_124

          If indeed. If that’s the rub.

  • Daniel Obior

    One of the good things that happened when Buhari was away.
    The trick is to keep him away and things will continue to improve.
    He should resign to fully recover and get his health back, while we get our country back.

    • What has the absence of PMB got to do with a YoY growth which was the bottom line in this story? Na wa for una o.

      • disqus_TyeJzkqCGj

        My brother, I tire o, I just weak

      • Daniel Obior

        When the man is around, he gets in the way of progress. That is how his absence positively affects things. Na wa for you o.

        • austin

          Daniel, u sef.
          Finally, after 2 years and 3 months, the government has given their supporters something to masturbate over and you want to spoil their fun.
          They are not asking, “How did the government allow this to happen in the first place?”
          Leave them o to drink their teacup of water in the desert.

          • Daniel Obior

            I am on their side on this one o. So long as Buhari is not part of it.

          • Milito

            Hahaahahaha….Daniel !!! You are just ONI JOGBO!

            My issue with this data is that it is not reflecting on the life of the citizenry. Inflation and factor unemployment is still at an all time high and yet I thought data are a product of reality ….

            I do hope that this is not another propaganda ?

          • Daniel Obior

            The baba is the chief oni jogbn. One has to be an oni jogbn to deal with his situation; lol. I do agree with you that the change is not reflected on the day to day life of people. You cannot indeed put anything beyong these vagabons in power, according to Fela, another oni jogbon.

      • Chuka Dennis

        LOL.
        When Buhari was away, Naira value appreciated. They said that Osinbajo has done it, that Buhari lacked vision to get things done. There4, Buhari should rather stay away or resign.
        Now, Buhari is back, so? Isnt it logical to credit the above news to him in the same vein?
        hahaha…Thats one thing with Nigerians. Too volatile.
        All congrats to the FG for battling & winning this battle in a short time.Its a team work. Every one was involved. Not Buhari, Not Osinbajo, Not any particular person but the entire administration gets the thumbs up.

        • Dele Awogbeoba

          Q2 is between March and june.

          • Netanyahu

            Between April and June.

          • Dele Awogbeoba

            Correct.

    • disqus_TyeJzkqCGj

      Olodo na im you be

      • Daniel Obior

        How fool go sabi olodo? Idiot.

    • Toby

      Out of recession on paper, however as a reality most Nigerians are still experiencing economic depression and effects of high inflation. This is a failed government.

      • 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.

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      Get D.A.N.G.O.T.E3xCementDirect from factory for promo price of 13OO Naira per bag the c0st of transportation is 3OO naira per eahbag Buyers can order a minimum of 1OO bags,Contact Mr Kolawole johnson on: O7O60751999/

    • abodes_124

      yes indeed some measures taken when he is not there have been helpful like liberalising the fuel and foreign exchange markets. He is back now and we will see how much new damage he will cause