4 Signs Nigeria Will Soon Be Out Of Recession
On Tuesday, the National Bureau of Statistics, NBS released the 2016 last quarter GDP reports which showed the Nigerian economy shrunk by 1.5%. But here is the thing, the data also pointed out interesting growth path for the non-oil sector, especially agriculture.
Below are list of signs that Nigeria's economy may soon be out of the woods:
1. Oil Price Is Recovering: Revenue from oil makes up two-thirds of the federal government's income. The economy suffered a meltdown when oil prices dipped to about $38 per barrel, but recovery has been steady over the past few weeks. Prices have risen to between $54 to $56 per barrel.
2. Oil Production Output Has Increased: On Tuesday, the Minister of Finance, Kemi Adeosun said that output has hit 2.1 million barrels per day. This is good news because attacks on oil facilities by militants had kept crude oil output at 1 million barrels per day.
3. The Naira Is Getting Stronger: Over the past one week, the Naira had acted as if it is on steroids, ballooning daily and strengthening against the US dollar in both the official and parallel markets. As recently as February 27, the Naira was seeing its worst days as it weakened to about 520 to one dollar only. If this pace is sustained, more businesses would be able to weather the storm thereby boosting investment.
4. Non-Oil Sector Is Improving: As mentioned in the NBS report, non-oil revenue increased its share of GDP to 92.85%, from 91.94% within the period under review. This means more resources are being put into local production, a trend which will likely lead to self sufficiency and boost exports.
Yes! There are rays of light at the end of this tunnel but how these pockets of victories are maintained will determine how soon Nigeria will win its Economic War.