Nigeria economy contracts 1.3%, way out of recession”

Nigeria’s economy is on its way out of recession the vice president’s office said after data showing gross domestic product shrank a less-than-previously 1.3 percent year-on-year in the fourth quarter of 2016. The contraction was a large improvement over the 2.24 percent year-on-year contraction in the third quarter.

A statement from the Office of the Vice President signed by Laolu Akande Senior Special Assistant on Media & Publicity to the President
Office of the Vice President said “There are now indications that the Nigerian economy is well on its way out of recession considering the 2016 overall and last quarter Gross Domestic Product reports. A review of the recent GDP figures released by the National Bureau of Statistics, NBS, show a contraction of -1.30 per cent in the fourth quarter of 2016, translating into an estimated economic growth rate of -1.51 per cent for the full year.

“Besides, the Nigerian economy actually performed better overall last year as the growth rate was higher with a contraction at -1.5 per cent than the -1.8 per cent predicted by the IMF, raising the hope that the recession may have buttomed out with the improving trends in several key sectors of the economy including agriculture and mining.

“The Buhari administration is also hopeful that with the ongoing series of engagement with the oil-producing communities of the Niger Delta, the increased oil production output would be sustained. In a similar vein, the ongoing implementation of the Social Investment Programmes, the significant infrastructural spending of the Federal Government, and a possible early legislative passage of the 2017 budget are all expected to spur a positive multiplier effect on the Nigerian economy”.