The Nigerian economy is on the way out of recession. The journey towards recovery began during the 3rd quarter of 2016 when delayed fiscal operations of government was restarted. The step was in the right direction and now being complemented by other policies.
This was stated during a paper presentation at the Lagos Chamber of Commerce and Industry (LCCI’s) petroleumdownstream clinic in Lagos by Managing Director of B. AdedipeAssociates Limited Mr. Biodun Adedipe .
Mr Biodun Adedipe said in his presentation tagged: NigerianEconomy in Recession- Alternative Strategies for the Petroleumdownstream sector: Economic perspective that a recession is notall a bad news, it carries a message that often eludes most people which is that recovery is inevitable. He pointed at some reasonsthat led to the abating recession to be over dependence onimports, low national productivity, preponderant corruption and rent seeking, overdependence on hydrocarbons and policy inconsistency and misalignment.
“There is evidence that Nigerian economy is diversified. There isa large variety of economic activities that is on in Nigeria, each making tangible contributions to the GDP by the value theycreate” he said.
According to him, non oil sector contributed 92.8% to GDP inQ4 2016, while the oil sector did only 7.15%. The six keycontributors totalling 78.17% are: Agriculture (24.42%); Trade (17.16%); ICT (11.56%); Manufacturing (9.27%); mining and quarrying (8.55%); Real Estate(7.21%). Summary put Agric at 26% industries at 20% and service 54%.
“in all if the present macro Economic statistics and theirinterpretation, it is easily inferred that the petroleum downstream sector plays a vital role that provides fuels logistics for people and goods movement, fuels self-generated power which accounts for bulk of electricity consumption in Nigeria today”
“The abating inflationary pressure was largely triggered by theprice correction of early 2016, which was accentuated by the attempt to play with flexible exchange rate about Mid-2016. Indirectly, it also plays big in government’s oil revenue as a driver of economic activities,”, he said