The NBS report showed a contraction of -1.30% in the fourth quarter of 2016, translating into an estimated economic growth rate of -1.51% for the full year.
The Nigerian economy showed signs of improvement last year with the growth rate of -1.5% as against the -1.8% predicted by the IMF.
A statement by Laolu Akande, Senior Special Assistant on Media & Publicity to the President, Office of the Vice President, said the report had raised “the hope that the recession may have buttomed out with the improving trends in several key sectors of the economy including agriculture and mining.
“The Buhari administration is also hopeful that with the ongoing series of engagement with the oil-producing communities of the Niger Delta, the increased oil production output would be sustained.
“In a similar vein, the ongoing implementation of the Social Investment Programmes, the significant infrastructural spending of the Federal Government, and a possible early legislative passage of the 2017 budget are all expected to spur a positive multiplier effect on the Nigerian economy.
“The Buhari administration will not relent in its determined effort and it’s comprehensive approach to bring about the full recovery of the Nigerian economy and set it on a solid path of sustainable growth. Our work continues and we renew the pledge to do it with diligence, and the firm commitment it deserves.”
“The recently released data from the National Bureau of Statistics showed that Gross Domestic Product (GDP) contracted by -1.30% in the fourth quarter of 2016. This translated into an estimated growth rate of -1.51% for the full year 2016. These figures reflect the slow-down in the economy for most of 2016 but also show that the recession may have bottomed out because of an improving trend in several key sectors.
Although the oil sector declined by -12.38% on a year on year basis, this was a relative improvement compared to the third quarter when the decline amounted to -22.01%. This outcome was due mainly to increases in production such that the quarter on quarter growth for the oil sector between the third and fourth quarters was 8.07%. The non-oil sector however declined by 0.33% after showing some resilience.
Agriculture grew at 4.03% in the fourth quarter of 2016 which was a marginal decrease from the 4.54% growth in the third quarter. This is mainly because agriculture (especially crop production, which accounts for the bulk of agricultural production) is highly seasonal, with growth in the third quarter of the year usually higher than the others. Nevertheless, the overall outcome for the year was that the agricultural sector grew by 4.11% for the whole of 2016 which was higher than the figure of 3.72% for 2015.
The manufacturing sector actually grew on a quarter on quarter basis by 1.89% but declined over the year by 4.32% reflecting the problems that the sector faced in the course of the year due to a combination of factors including the depreciation in the exchange rate and higher energy costs. The metal ores sub-sector grew by 7.03% in Q4 of 2016 as compared to 6.93% in the last quarter of 2015, thus justifying the priority that the Federal Government continues to give to solid minerals.
Overall, the Nigerian economy performed better than expected even though we are still in the early stages of recovery. It is indeed noteworthy that overall 2016 growth was higher with a contraction at -1.5% than the -1.8% predicted by the IMF.”
