- Nigeria Emerges From Recession; GDP Grew 0.55% in 2Q
The African largest economy, Nigeria, exit economic recession in the second quarter, according to the National Bureau of Statistic (NBS) report obtained on Tuesday.
The economy grew at 0.55 percent in the second quarter of the year, up from revised 0.91 percent contraction, previously reported as -0.5%, recorded in the first quarter of the year and 2.04 percent higher than the -1.49 percent recorded in the corresponding quarter of 2016.
According to the report, the economic recovery was driven mainly by four key sectors, oil agriculture, manufacturing, and trade.
The figures showed oil GDP rebounded from the -11.6 percent recorded in the 2Q 2016 and -15.40 percent of 1Q 2017 to 1.64 percent in Q2 2017.
However, non-oil GDP expanded marginally at 0.45 percent, down from 0.72 percent record in the preceding quarter and -0.38 percent from the corresponding quarter in 2016.
The agricultural sector maintained its strong growth, growing by 3.01 percent in the second quarter 2017, however, slightly below the 3.39 percent obtained in the first quarter of 2017 and 4.53 percent of 2016 second quarter.
Also, the manufacturing sector remained consistent, expanding for the second consecutive quarter at 0.64 percent, lower than the 1.36 percent from the first quarter but far better than the -3.36 percent recorded in 2Q 2016.
Meanwhile, trade bulk of the economy contracted -1.62 percent, still better than the -3.08 percent recorded in the first quarter.
Experts believed economic recovery in the second quarter of the year against analyst’s projection of fourth quarter validated federal government and central bank’s economic recovery and growth plan (ERGP).
“The results justified the series of initiatives implemented by the Central Bank of Nigeria and the federal government in revamping the economy and reaffirmed the apex bank commitment to growth as the government looks to diversify the economy,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd.
The Naira maintained stability across all forex segments.
NNPC Supplies 1.44 Billion Litres of Petrol in January 2021
The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.
The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.
NNPC said the 1.44 billion litres translate to 46.30 million litres per day.
Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).
The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.
Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.
For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.
Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.
Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.
NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021
The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.
This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).
The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.
It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.
NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.
Nigeria’s Food Inflation Hits 22.95 Percent in March 2021
Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.
Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.
Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.
On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.
Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.
Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.
The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.
However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.
Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.
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