Presidency reveals 11 things that show Nigeria’s economy is out of recession
The Presidency in its latest newsletter
says it believes that the Nigerian
economy is on its way to recover and
growth and in no time will be out of
recession. It also listed 11 reasons for its
belief:
It was gathered that the Presidency
said that after two consecutive quarters
of negative growth, the non-oil economy
showed, in Q3 2016, a modest return to
positive territory, at 0.03%, adding that,
"This was partly due to the continued
good performance of agriculture and the
solid minerals, two sectors prioritised by
the Federal Government."
The reasons according to the Presidency
latest newsletter are:
1. After two consecutive quarters of
negative growth, the non-oil economy
showed, in Q3 2016, a modest return to
positive territory, at 0.03%. This was
partly due to the continued good
performance of agriculture and the
solid minerals, two sectors prioritised
by the Federal Government.
President Muhammadu Buhari
Agriculture grew by 4.54% in the
quarter under consideration of which
growth in crop production at nearly 5%
was at its highest since the first quarter
of 2014. Growth in the solid mineral
sector averaged about 7%.
2. The Anchor Borrowers Programme
(ABP) of the Central Bank of Nigeria
(details below), combined with a new
soil map designed to aid fertilizer
application, substantially raised local
production of grains in 2016 (yields
improved from 2 tonnes per hectare to
as much as 7 tonnes per hectare, in
some States) and produced a model
agricultural collaboration between
Lagos and Kebbi States.
It was previously reported that
President Muhammadu Buhari has
moved Nigeria out of recession as the
country's economy grows stronger.
3. The Fertilizer Intervention Project
(which involves a partnership with the
Government of Morocco, for the supply
of phosphate) is on course to
significantly raise local production, and
bring the retail price of fertilizer down
by about 30 percent.
4. The newly established Development
Bank of Nigeria (DBN) is finally taking
off, with initial funding of US$1.3bn
(provided by the World Bank, German
Development Bank, the African
Development Bank and Agence
Française de Development) to provide
medium and long-term loans to MSMEs
5. A new Social Housing Programme is
kicking off in 2017. The ‘Family Homes
Fund’ will take off with a 100 billion
naira provision in the 2017 Budget. (The
rest of the funding will come from the
private sector)
6. More than 800 billion naira has been
released for capital expenditure in the
2016 budget, since implementation
started in June 2016. This is the largest
ever capital spend within a single
budget year in the history of Nigeria.
These monies have enabled the
resumption of work on several stalled
projects — road, rail and power projects
— across the country.
Nigerian market women in the act of buying and
selling
7. All 4 components of the Social
Investment Programme (SIP) have now
taken off. The SIP is the largest and
most ambitious social safety net
programme in the history of Nigeria,
with more than 1 million beneficiaries
so far — 200,000 N-Power beneficiaries,
23,400 Government Enterprise and
Empowerment (GEEP) Scheme
beneficiaries, 1,000,000 Homegrown
School Feeding Programme (HGSFP)
beneficiaries, as well as ongoing
Conditional Cash Transfer (CCT)
payments across nine pilot states.
8. Strategic Engagements with OPEC and
in the Niger Delta have played an
important part in raising our expected
oil revenues. Already, Nigeria’s External
Reserves have grown by more than $4
billion in the last three months.
9. Collaboration with China, proceeding
from President Buhari’s April 2016 visit,
has unlocked billion of dollars in
infrastructure funding. Construction
will begin on the first product of that
collaboration, a 150km/hour rail line
between Lagos and Ibadan, in Q1 2017.
10. The National Economic Recovery and
Growth Plan (NERGP), the Federal
Government’s medium-term Economic
Plan, is due for launch in February
2017, and will chart a course for the
Nigerian economy over the next four
years (2017–2020).
11. The almost 8-fold oversubscription of
our recent Eurobond (orders in excess
of US$7.8 billion compared to a pre-
issuance target of US$1bn)
demonstrates strong market appetite for
Nigeria, and shows confidence by the
international investment community in
Nigeria’s economic reform agenda.
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