The Presidency has released 10 things to show that Nigeria’s economy is improving under the President Muhammadu Buhari administration.
Media Adviser to the President, Femi Adesina, in a statement on Wednesday, said the current administration had put the Nigerian economy on “firm and solid footing.”
Adesina added that the Fourth Quarter 2018 Gross Domestic Product (GDP) results released recently by the National Bureau of Statistics (NBS) give lots of cause to cheer.
Below are the 10 things as listed by the presidency:
1. The economy has recorded continued progress since it emerged from recession in 2017. Current result shows a real GDP growth of 2.38% compared to 1.81% in Q3 last year, representing the strongest growth since the economy slipped into recession in 2016.
2. For more than five decades, Nigeria has paid lip service to diversifying the economy, from sole dependence on oil. The latest result shows that economic growth has continued to be driven by the non-oil sector, which grew by 2.70% in Q4 2018, up from 2.32% in Q3 2018. It represents the strongest growth in the sector since Q4 2015.
3. The non-oil GDP growth was driven by Quarrying and Other Minerals, followed by Telecommunications, Agriculture, Manufacturing, and Construction. That is diversification in progress, real time, no matter what the naysayers may say.
4. While the non-oil sector actually drove GDP growth, the oil sector contracted with crude oil and gas GDP reducing by -1.62%. This shows that with good governance, focus, prudence and accountability, the life of the country need not depend on oil ad infinitum.
5. The NBS report further shows that Services GDP growth recorded its best performance in 11 quarters, growing by 2.90% compared to 2.64% in Q3 2018 and 0.10% in Q4 2017. Overall, while growth in the economy was moderated by the contraction in the oil sector, 39 out of 46 economic activities recorded positive growth in the quarter under review.
6. The improved GDP growth can be attributed to the Government’s continuous implementation of the policy initiatives in the Economic Recovery and Growth Plan (ERGP), which has boosted the performance of the non-oil sector.
7. The growth in Q4 2018 GDP is consistent with the improvements in other macroeconomic indicators, including inflation, capital inflows, foreign trade, external reserves, amongst others.
8. Headline inflation has been trending downwards from 18.55% as at December 2016 to 15.37% in December 2017 and further to 11.44% in December 2018.
9. The total value of capital importation into Nigeria stood at $2,140 million in the fourth quarter of 2018. This translates to a full year capital inflow of $16,812 million compared to $12,228 million in 2017.
10. Although the economy is now growing, more still must be done to deepen its diversification and make it less vulnerable to external shocks. That is an unflinching commitment of the Muhammadu Buhari administration.