The Nigerian Stock Exchange All Share Index gained 2.96 percent at 09:31:56 a.m. local time as global crude oil price reached $48.95 to a barrel for the first time in a month. The index that has lost 11.28 percent of its value this year alone seem pose for moderate recovery as emerging markets continue to recover from last week global market dip.
However, Nigerian economy grew 2.35 percent in the second quarter according to the data released on August 25th by National Bureau of Statistics. The report shows a 1.61 percent reduction in growth when compared with preceding quarter and lower by 4.19 percent from second quarter 2014. Aggregated GDP was N22, 859,153.01 million at basic prices while second quarter of 2014 was N21, 734, 829.86 million, nominal GDP was 5.17 percent more than last year and 0.85 percent higher than first quarter, 2015.
The report also indicates a drastic 5.9 percent drop in oil production from first quarter when output was 2.18 million barrels per day (mbpd) and 7.3 percent drop from second quarter last year. The non-oil sector contributed 90.20 percent to the national GDP – 0.7 percent more than preceding quarter and 0.96 percent more than second quarter 2014.
There is no denying the fact that the current Central Bank of Nigeria Forex policy has hampered importers’ trade and subsequently reduced the new job creation (informal sector) by 74.8 percent and 69.9 percent decline in the total new jobs created in the second quarter.
“The measure would slow economic growth and even deter foreign investors from actively investing in the economy” said Doyin Salami, one of the members of Nigeria’s Monetary Policy Committee that criticized the new policy by the apex bank.
Another member, Chibuke Uche questioned the legitimacy of the apex bank’s June decision to stop importers of 41 items from accessing official FOREX rate.