Stella Dimoko FG Expects Better Economic Outlook For Second Half Of 2016


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Thursday, September 01, 2016

FG Expects Better Economic Outlook For Second Half Of 2016

*2nd quarter figures indicate further growth in Agric, solid mineral sectors:
*Better than IMF estimates
*Reveals highest increase in share of investment in GDP since 2010

The just released GDP figures for the 2016 second quarter by the National Bureau of Statistics while confirming a temporary decline, has also indicated an hopeful expectation in the country's economic trajectory.

Besides the growth recorded in the agriculture and solid mineral sectors, the Nigerian economy in response to the policies of the Buhari presidency is also doing better than what the IMF had estimated with clear indications that the second half of the year would be even much better.

The Buhari presidency will continue to work diligently on the economy and engage with all stakeholders  to ensure that beneficial policy initiatives are actively pursued and the dividends delivered to the Nigerian people.

The following statement was made by the Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu on the latest NBS report:

"The just recently released data from the National Bureau of Statistics showed that Gross Domestic Product declined by -2.06% in the second quarter of 2016 on a year-on-year basis.

A close look at the data shows that this outcome was mostly due to a sharp contraction in the oil sector due to huge losses of crude oil production as a result of vandalisation and sabotage.  

However, the rest of the Q2 data is beginning to tell a different story.  There was growth in the agricultural and solid minerals sectors which are the areas in which the Federal Government has placed particular priority.

Agriculture grew by 4.53% in the second quarter of 2016 as compared with 3.09% in the first quarter.  The metal ores sector showed similar performance with coal mining, quarrying and other minerals also showing positive growth of over 2.5%.  Notably also, the share of investments in GDP increased to its highest levels since 2010, growing to about 17% of Gross Domestic Product.  

The manufacturing sector though not yet truly out of the woods is beginning to show signs of recovery while the service sector similarly bears watching.  

Nevertheless, the data already shows a reduction in imports and an increase in local produced goods and services and this process will be maintained although it will start off slowly in these initial stages before picking up later.

The inflation rate remains high but the good news is that the month-on-month rate of increase has fallen continuously over the past three months.  

Unemployment remains stubbornly high which is usually the case during growth slowdowns and for reasons of a structural nature.

The picture that emerges, barring unforeseen shocks, is that the areas given priority by the Federal Government are beginning to respond with understandable time lags to policy initiatives.  Indeed, as the emphasis on capital expenditure begins to yield results and the investment/GDP numbers increase, the growth rate of the Nigerian economy is likely to improve further.  

As these trends continue, the outlook for the rest of the year is that the Nigerian economy will beat the IMF prediction of -1.8% for the full year 2016.

The IMF had forecasted a growth of -1.8% for 2016, however the economy is performing better than the IMF estimates so far. For the half year it stands at -1.23% compared to an average of -1.80% expected on average by the IMF. 

What is more, it is likely the second half will be better than the first half of 2016. This is because many of the challenges faced in the first half either no longer exist or have eased."


  1. Stella what is great news?

    You are In Germany while we are in Nigeria. We know what we are facing in this country so plz dun lie to us.

    Some group of persons carried their precious voter's card, went to the polling unit, they went and voted A Fulani herdsman into power. I think this happened sometimes April 28 I dun know.. They said it was presidential election, i wasnt around..My Daddy Told me when I came bk.

    Apart from taking care of Cows( they will beat you to hell when they find out you are trying to be a boss of your own) and destruction of lives and properties, what else does a herdsman know?

    Mr Moderator, I think with these few points of mind, 1 or 2 persons here can agree with me that BUHARI is a good for nothing Herdsman.

    For those wen vote am in then dey follow me wer no even know sey e contest for presidency dey cry for my beloved father land.... The thunder that will fire you will come like malaria pills, 2 in the morning, and 2 in the night.

  2. Bunch of clueless people... bunch of useless people

  3. Akuko nnabe. ....buharized economy

  4. Akuko uwa NTA channel 8 Enugu
    Felicia Ukoha reporting.
    Ndia ara.
    Vuhari I raise hand for u

  5. Second half of d year in September?

  6. PG 18
    Are we still on promises bus? meanwhile if it was goodluck now una go quick go occupy lagos.

  7. Odiegwu!!
    Are they going to do wonders all of a sudden or did they forgot something they should have done since?
    They should go and rest already biko..

  8. The last time I checked, 2nd half of d year begins in july or has things changed because of eclipse?????

  9. The National Bureau of Statistics just announced that Nigeria is officially in a recession.

    Hope these peeps will stop the blame games and do the right things by making the right policies and appointing the best hands regardless of tribe and religion before hunger kill us all.

    God bless Nigeria

  10. Hmmmm...I dunno what to say oh cos' Kemi Adeosun's news is disheartening as it is but this seem to be a contradiction. This government seem confuse if you ask me. Why can't they all say the same. thing instead of contradicting one another. I agree that we need to reduce our importation drastically and concentrate on growing the cottage industry / indigenous industry.

    1. Growing the cottage industry/indigenous industry,we want to achieve this with which electricity.

      Abi na generator you wan use. Ordinary electricity we cant generate bt want to build industries.

      Misplaced priorities

  11. mtchewwwwww... i just want to leave this country biko.

  12. Meanwhile a bag of cement is today N2100 against N1400 of last week.

    They should keep deceiving themselves

  13. This government, God please let something good come out of it. I dont understand what is going on in this great country


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