The Presidency has revealed that the federal government will sustain the economic growth achieved in the last quarter of 2016 and lead the country out of recession this year by increasing the revenue it makes from oil and gas and spending more money on social investment programmes and infrastructural development. This was disclosed in a statement signed and issued on Tuesday by the Economic Adviser to the President, Adeyemi Dipeolu, in reaction to the 4th quarter 2016 Nigerian Gross Domestic Product report issued by the National Bureau of Statistics.
Dipeolu noted that, in 2016, Nigeria’s economy performed better than expected even though the country was still in the early stages of recovery; adding that the overall 2016 growth was higher that the prediction made on Nigeria by the International Monetary Fund (IMF)
He said that the Economic Recovery and Growth Plan released by the Federal Executive Council will fast-track Nigeria’s exit from recession.
Dipeolu also said that the likely early passage of the 2017 budget estimates and the ongoing engagement and dialogue between the Federal Government and various communities in the Niger Delta would also lend further momentum to economic growth.
He said: “Nevertheless, the Social Investment Programme of the Federal Government and the relatively high level of infrastructural spending in late 2016 as well as 2017 capital spending plans should begin to have a multiplier effect on the economy.
‘The trend in nearly all the sectors showed a growth improvement in nominal terms although such effects were outweighed by inflationary factors. The expectation is that this trend and the slowing down of month-on-month inflation will enable an early return to positive growth in the economy. This positive trajectory will also receive a boost from the positive news emerging from other parts of the economy.
“Notable in this regard is the release of the Economic Recovery and Growth Plan by the Federal Executive Council which sets the stage for further fast-tracking of recovery and economic diversification.
“In the same vein, the likely early passage of the 2017 budget estimates would also lend further momentum to economic growth. Similarly, the recent bond issue of US$1 billion which was subscribed by almost 8 times will reinforce the trend of increasing reserves. Indeed, foreign reserves rose from $23.9 billion in October 2016 to $27.8 billion in January 2017.
“Furthermore, there is a better outlook for revenues from the petroleum sector with revenues set to increase with oil production now over 2m barrels per day while oil prices holding relatively steady at an average of about $55 per barrel.
“This improved outlook for the oil and gas sector is closely linked to the on-going engagement and dialogue between the Federal Government and various communities in the Niger Delta.
“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.”
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