Meanwhile, the International Monetary Fund (IMF) has announced that Nigeria is the third fastest growing economy in the world after China and India, as a result of the growth of the nation’s economy from 6.9 per cent in 2009 to 7.4 per cent this year.

The Minister of Finance, Dr Olusegun Aganga, who described this rating by IMF as a good development at a time when the economies of the developed countries were contracting, said with new policies being initiated by the Federal Government, the economy would witness a turnaround in a very short time.

“What we need in Nigeria is continuity in policies and leadership to sustain the growth,” he advocated.

Speaking at a joint press conference with Sanusi at the World Bank/IMF meetings in Washington DC, Aganga said the economic prospect was bright because despite the fact that Nigeria was yet to take advantage of opportunities and resources available within the country, it achieved 7.4 per cent growth and 48 per cent increase in revenue in the first half of the year.

Among the advantages he identified were existence of 33 untapped solid minerals, steady increase in the oil revenue and 75 million telecommunic-ations subscribers.

“If we have continuity in policy, a lot will be done in the economy and we will do more as shown with the increase in oil revenue by 46 per cent during the first six months of 2010,” he said.

However, Dr Aganga said “the Federal Government requires N100 billion to finance infrastructure development for the next four years in order to add two per cent to the gross domestic product (GDP) of Nigeria.”

He made reference to the state of the manufacturing sector, where operators put 40 per cent of cost on power generation, saying, if infrastructure in Lagos and other places were upgraded, there would be a major relief across the country.

“This could be our decade. I am more excited about the country today than few years back,” Aganga said.

The finance minister, who also is the chairman of World Bank 2010 annual meeting, confirmed his push for Africa to emerge as the president of World Bank and Managing Director of the IMF.

“Of course and it is clear that since 1946, the president of the World Bank has always been from America and the MD of IMF is always from Europe . We are all in agreement that it should change. The appointment to leadership positions should be open to all members, transparent and based on merit going forward. That is part of the reform.”

He added that he had been making the case to increase the quota of the constituency in Africa.

“Whatever we come out with, it is better that we protect the quota of low-income countries in Africa and small medium countries. That is important because it determines the aids to get and the voice in policy issues,” he assured.

Meanwhile, the CBN has raised concerns over the rate Nigeria’s foreign reserves is depleting, saying that plans are underway to slow the pace of spending from the reserves to defend the naira.

Sanusi told newsmen at the sidelines of the IMF and World Bank meeting, at the weekend, adding that the apex bank must make sure the Federal Government did not have access to “easy money” to continue its deficit spending habits.

A series of factors that had been driving the CBN to draw down its forex reserves in defense of the naira were winding down, as the bank reported that its forex reserves were down by 15 per cent from a year earlier at about $34.57 billion, including a seven percent decline in the last few weeks.

“I think we’ll see less spending, but I think the naira will remain stable,” Sanusi said.

The naira slid to a 13-month low in September amid strong local demand for the United States dollar by gasoline and rice importers.

Sanusi said the current exchange rate was not a level that needed to be maintained “at all costs,” adding that “in the short to medium term, we do believe we can maintain this range.”

It will be recalled that the CBN surprised analysts and investors, last month, by raising its benchmark interest rate by a quarter of a percentage point to 6.25 per cent.

http://www.tribune.com.ng/index.php/front-page-news/11934-more-bank-directors-ll-be-jailed-sanusi-nigeria-is-worlds-3rd-fastest-growing-economy--imf

I love this, only if it is true.

LouisThoru:

I love this, only if it is true.

It is true. The stable price of oil and our vibrant telecoms market are responsible. Imagine a fully deregulated oil sector and I'm sure we will be ahead of India and closing up on China in terms to economic growth rate

Are Nigerians better off in terms of standard of living?Things are really hard here in Port-Harcourt.Maybe Abuja was used as the determinant zone.

Good lord, give us double digit growth for the next ten years and keep our womens legs closed so our population is controlled

Economy growing with tokunboh cars, clothes, shoes, and general dumping of used items from abroad. Na wa o.

It is only the salary of our leaders that have grown above other leaders in the world. Or, is this the economic growth? Somebody educate me. I no know book o .

jamace:

Economy growing with tokunboh cars, clothes, shoes, and general dumping of used items from abroad. Na wa o.

It is only the salary of our leaders that have grown above other leaders in the world. Or, is this the economic growth? Somebody educate me. I no know book o  .

Very nonsensical way of using your medula oblongata which is going into extinction.

Though I never studied economics but the growth of an economy can easily be measured from its economic indices like GDP and GNP.

I'd rather prefer we become the Third Fastest Developing Country.

NA WA O BUT I CANT SEE IT, MOST GUYS LAID OFF LAST YEAR ARE STILL AT HOME

slap1:

I'd rather prefer we become the Third Fastest Developing Country.

Agreed! For us to sustain and surpass this next year, we must deregulate the oil industry

dappssee:

Agreed! For us to sustain and surpass this next year, we must deregulate the oil industry

I would rather look at the issue from a macro-economics level rather than a specific micro-economics level i.e oil industry.
Our growth is being held back by several issues such as inadequate power, unhealthy infrastructure, poor state of education sector, over-dependency on oil sector, and poor productivity.

At Topic

I will take the figures quoted by the IMF with a pinch of salt. Mainly on the basis that statistics can be manipulated for obvious reasons. If the Nigerian economy grew by 7.4% this year, did it have a concomitant positive effect on the lives of its citizens? I doubt it. Did Nigeria grow faster than China, India, Vietnam, Brazil or South Korea? I also doubt that. The only way Nigeria could have had such a growth figure without an improvement in the lives of its citizens is if it has a services dominated economy. We know that to be false as the Nigerian economy is still heavily product/manufacturing dominated. One can argue that the telecomms sector (service) grew but it is inconceivable for the telecomms sector alone to be responsible for a growth rate of 7.4%

growth shd lead to development then we can start dancing

as it is, we are a paper tiger

The only option for nigerian economy growth,the only obstacle in its way are the miscreat leaders.

We can only but grow and innovate.

dappssee:


“What we need in Nigeria is continuity in policies and leadership to sustain the growth,” he advocated.

Speaking at a joint press conference with Sanusi at the World Bank/IMF meetings in Washington DC, Aganga said the economic prospect was bright because despite the fact that Nigeria was yet to take advantage of opportunities  and resources available within the country, it achieved 7.4 per cent growth and 48 per cent increase in revenue in the first half of the year.

Among the advantages he identified were existence of 33 untapped  solid minerals, steady increase in the oil revenue and 75  million telecommunic-ations subscribers.

“If we have continuity in policy, a lot will be done in the economy and we will do more as shown with the increase in oil revenue by 46 per cent during the first six months of 2010,” he said.

However, Dr Aganga said “the Federal Government requires N100 billion to finance infrastructure development for the next four years in order to add two per cent to the gross domestic product (GDP) of Nigeria.”

He made reference to the state of the manufacturing sector, where operators put 40 per cent of cost on power generation, saying, if infrastructure in Lagos and other places were upgraded, there would be a major relief across the country.

“This could be our decade. I am more excited about the country today than few years back,” Aganga said.


http://www.tribune.com.ng/index.php/front-page-news/11934-more-bank-directors-ll-be-jailed-sanusi-nigeria-is-worlds-3rd-fastest-growing-economy--imf

"33 untapped  solid minerals, steady increase in the oil revenue (submaximal crude oil output). . . . .  This could be our decade."

Brash as Aganga might sound, with facts/stats like those highlighted, hmmmm. . . . Nigeria's economy might be in for a fine decade.

Its absolute false, i believe it will be rectified. I know deep in me they meant 3rd fastest growing most corrupt nation

Its absolute false, i believe it will be rectified. I know deep in me they meant 3rd fastest growing most corrupt nation

LouisThoru:

Very nonsensical way of using your medula oblongata which is going into extinction.

between the three of us, i wish u had made that statement to yourself.

I think IMF has been successfully scammed. You all give it up for Mallam Sanusi and our boys at CBN.

even my 3 yr old nephew knws that statement is false so whoever blives its true shud check their academic record, cos i strongly blive ur last gained qualification was a nursery skool cert.

Very nonsensical way of using your medula oblongata which is going into extinction.

Thank you.

But don't you think it necesary you do some explanation to revive and re- orientate my nonsensical medula oblongata? Na wa for this teacher o .

Idi ots teaching IMF their jobs. So IMF knows not what they are saying, right?

You all gathered together still doesnt have what it takes to do what IMF does. Schmuck potatoes.

No comment !!!

LouisThoru:

Idi ots teaching IMF their jobs. So IMF knows not what they are saying, right?

You all gathered together still doesnt have what it takes to do what IMF does. Schmuck potatoes.

Have you not heard of economists disagreeing?

Also, we are yet to get your opinion on the growth figure and why it may or may not be accurate. This opinion will certainly be much better than unnecessary insults.

.

Finally we are going somewhere!!!

God bless Nigeria!!

The figures make sense
Nigeria's economy is growing, no doubt. When you think about the fact that India is supposed to have grown by over 10% in the last three quarters consecutively, but their unemployment rate is 57% more than what they had last year, you begin to understand why people are complaining on this thread. It's not directly related. The country may make more money, but is it spending more money, or generating more income internally? Our inflation is in double digits, and the real unemployment rate is probably 30-35% (IMF thinks it's 19.7%).

Realistically, before you can have the kind of growth that will trickle down to have the effect we are hankering for, we'll have to make massive CAPEX investments into the economy, not the $2-10 billion we are seeing on a yearly basis now, but possibly in the range of $40-80 billion. I'm not talking about bourgeiose-fantasy projects like Eko Atlantic, but real major infrastructure developments, much needed roads, transportation, hospitals, agribusiness, power, etc. Just imagine the kind of jobs that a major reconstruction of all grade A highways in Nigeria, and a total overhaul of rail transportation can provide. Or mass expansion of the seaports, maybe even the development of inland waterways, dredging the Niger, building an inland seaport in Lokoja to aid North-South movement of goods. If $10bn over 10 years can create 100,000 plus jobs in telecoms, $50bn over 10 years can create maybe a million jobs, in diverse sectors.

Remember that the oil majors have cut off all CAPEX spends for now, awaiting the PIB shoe to drop. The revenues from production have increased this year, yes, but how much of that is re-invested into Nigeria as CAPEX these days?

So the international community can see anything GOOD in NIGERIA? If so the coming of our Lord is at hand

Amhatu:

This is very Goodnews. To the forum poster on deregulation of oil, I totally disagree. Nigeria needs to keep the current oil policy it has in place.


The revenues when stable have to be used to diversify the economy away from all Oil, not deregulation.

While Oil may have helped we certainly can not depend on it all the time for the entire economic engine of Nigeria. The time has come to embrace cleaner and better technologies that are already available while still keeping oil at sustainable production levels.
The Delta State Governor,Dr Emmanuel Eweta Uduaghan,  has mentioned diversifing the delta State economy away from all Oil and he is certainly on the right road.

All Delta State people certainly should elect Governor, Dr Emmanuel Eweta Uduaghan again to see most of his projects through.

Uduaghan boy! What are you driving. Prado? Great move. But wrong forum shaa.