Nigerian Economy: FG Predicts 3.5% Growth in 2018
BY EDMOND ODOK, ABUJA – Against the backdrop of positive Gross Domestic Product (GDP) figures announced by the National Bureau of Statistics (NBS), the Federal Government on Tuesday confirmed its expectation that the Nigerian economy will grow up to 3.5 per cent this year.
According to the NBS figures, further growth in the fourth quarter of 2017 indicated that the economy grew by 1.92 per cent during the period under review.
The NBS report also showed that the economy grew by 1.4 per cent in the third quarter of 2017 and the latest fourth quarter figure marks the third consecutive growth since the country’s exit from recession in the second quarter of 2017.
Special Adviser to the President on Economic Matters, Dr Adeyemi Dipeolu, who gave the assurance in Abuja, said the government’s confidence is anchored on the positive indices as outlined in the NBS latest report.
Dipeolu said the released GDP figures present an encouraging scenario that the economy will improve in all major sectors, especially the non-oil sector which had recorded disturbing contraction in the recent past.
Dr Dipeolu maintained that taking into considerations all available indices presented by the NBS and experts’ projections, the Federal Government is upbeat that its estimated 3.5 per cent growth in 2018 is achievable.
According to a statement he issued on the NBS report, Dipeolu said; “The figures recently released by the Nigerian Bureau of Statistics (NBS) for the fourth quarter of 2017 (Q4 2017) and the full year 2017 (FY 2017) show a consolidation of post-recession growth in the national economy.
“The growth of 1.92% in Q4 2017 was an improvement on both the previous quarter and the previous year. This quarterly growth contributed to an overall positive growth rate of 0.82% in 2017 which translates to a 2.24% points increase from -1.58% in 2016.”
The Presidential aide further stated that; “There are two encouraging aspects of the figures. The first is that all major sectors of the economy namely agriculture, industry and services are now experiencing positive growth.
“Agriculture, which accounted for 25% of GDP in 2017, grew by 4.23% in Q4 2017; while Industry grew by 3.92%. The Services sector, which is about 53% of GDP, returned to positive growth in Q4 2017. Although the increase was marginal at 0.10, it represented a positive swing of 2.76% points from the level in Q3 2017.”
The statement explained that “The other notable element of the data is that the non-oil sector experienced a strong growth of 1.45% in Q4 2017 as compared to a contraction in the previous quarter and the whole of 2016. This showing, the strongest since 2015, points to steady improvements across the economy”, adding that; “Also noteworthy in this regard were strong quarterly growth in crop production, crude oil production, metal ores, construction, transportation, trade, electricity and gas production.”
For the Special Adviser on Economic Matters, “The positive trajectory for the economy should begin to gain momentum as the multiplier effects of investments in infrastructure, including power, roads, and rail, alongside improvements in the business environment begin to manifest.”
“The agricultural sector is expected to continue its strong showing, while manufacturing should also show sustained growth based on improved availability of foreign exchange and greater backward integration in several of its sub-sectors”, Dr Dipeolu said.
