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Finally, Nigeria Emerges From Recession; GDP Grew 0.55% in 2Q

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  • 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.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Economy

Criminals Vandalise 65 Pipeline Points in April

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65 Pipeline Points Vandalise in April

The Nigerian National Petroleum Corporation has said 65 pipeline points were vandalised in the month of April by criminals.

In the corporation report released on Wednesday for the month of April, NNPC said this represents a 240 percent increase from the 19 points recorded in the month of March 2020.

The report also noted that Nigeria’s total crude oil production rose by 3.17 million barrels or 5.28 percent to 63.19 million barrels in the month of March, representing a daily average of 2.04 million barrels per day.

Meanwhile, in another related development, the NNPC said it incurred over 200 percent operating deficit in the month of April.

It said, “The report in April 2020 indicates an increased trading deficit of N30.81bn compared to the N9.53bn deficit posted in March 2020.

“The current hike of over 200 per cent is attributed to the 29 per cent increased deficit for NPDC due to ongoing coronavirus-related impact of reduced exports, coupled with the upsurge in corporate headquarters deficit arising from terminal benefits made to retired staff.”

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Economy

NNPC Operating Deficit Hits N30.81bn in April

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NNPC Operating Deficit Rises by Over 200% to N30.81bn in April

The Nigerian National petroleum Corporation (NNPC) said its operating deficit rose N30.81 billion in the month of April.

In the corporation’s latest financial and operational activities report for April, it says the over 200 percent loss was recorded through the Nigerian Petroleum Development Company, a subsidiary of the Nigerian National Petroleum Corporation.

It said, “The report in April 2020 indicates an increased trading deficit of N30.81bn compared to the N9.53bn deficit posted in March 2020.

“The current hike of over 200 per cent is attributed to the 29 per cent increased deficit for NPDC due to ongoing coronavirus-related impact of reduced exports, coupled with the upsurge in corporate headquarters deficit arising from terminal benefits made to retired staff.”

It added, “In addition, PPMC, NGMC and Duke Oil Incorporated posted reduced surpluses arising from the COVID-19 effect of reduced demand, fluctuating prices and marketers’ unwillingness to lift products thus affecting revenue.”

Meanwhile, the report also stated that the corporation supplied a total of 0.94 billion litres of petrol, representing about 31.37 million litres per day, in the month of April.

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Nigeria’s Population to Hit 791m, Surpasses China by 2100 – Report

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Nigeria’s Population to Surpasses China by 2100 – Report

A recent report has predicted that Nigeria’s population will surpass that of China by the year 2100.

The new research conducted by the University of Washington’s Institute for Health Metrics and Evaluation projected that China’s population would peak at around 1.4 billion in four years time and moderated to about 732 million people by 732 million.

While Nigeria’s population is expected to rise more than the Chinese to 791 million by the same year to emerge the world’s second largest country after India.

The reduction in population was a result of the projected drop in global fertility rates going forward. However, the research predicted that the population of sub-Saharan Africa, the world’s poorest region, would triple in size to over three billion people by 2100.

Prof. Christopher Murray, a researcher and former Director of the Harvard Centre for Population and Development, said the surge in population in the region would lead to migration to many European and Asian nations with far less manpower as of the time.

Murray said, “We will have many more people of African descent in many more countries as we go through this.

“Global recognition of the challenges around racism are going to be all the more critical if there are large numbers of people of African descent in many countries.”

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