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Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by Emekamex(m): 10:43am On Mar 10, 2016
Nigeria’s economic growth data confirmed what central bank Governor Godwin Emefiele has been loath to admit: that currency controls are hurting the economy.
Growth in Africa’s biggest economy and oil exporter slowed to 2.8 percent last year, the weakest level since 1999 and down from 6.2 percent recorded in 2014. Industrial output contracted 2.2 percent last year, compared with expansion of 6.8 percent in 2014.
Tumbling oil prices have battered Nigeria, a country that relied on crude for two-thirds of government revenue. Capital controlsand restrictions on currency trading imposed by the central bank to prop up the naira -- and backed by President Muhammadu Buhari -- have made matters worse. Rather than benefiting manufacturers, as Emefiele has claimed, the GDP data show industries such as food and vehicle production continue to suffer.
The figures “confirm widespread fears of a slowdown, possibly even a recession,” Alan Cameron, an economist at Exotix Partners LLP in London, said in an e-mailed note. “The lack of investment and access to imported inputs has hamstrung the corporate sector, and is increasingly being felt by the man on the street.”
Gross domestic product rose 2.1 percent in the fourth quarter from a year earlier, the statistics office said on Tuesday, down from 2.8 percent in the previous three months and lower than the 2.9 percent median estimate of 11 economists surveyed by Bloomberg.
The central bank’s measures have effectively pegged the naira at 197 to 199 against the dollar since March last year and hindered the ability of manufacturers to pay foreign suppliers. They’ve also caused investors such as Aberdeen Asset Management Plc and Ashmore Group Plc to sell naira bonds and stocks.
Nigeria’s main stock index has fallen 9.8 percent this year, more than any other bourse in Africa apart from Zimbabwe’s. Forwards prices suggest the naira will drop 31 percent to 288 in a year, while the black market rate is around 320 to the dollar.
Brent crude oil has plunged 28 percent in London since the beginning of last year and was trading as low as $40.62 a barrel on Thursday.
Buhari, 73, became the first opposition leader to win power in Nigeria last year, riding on a wave of optimism that he would fix an ailing economy, end an insurgency by Boko Haram in the northeast and combat rampant corruption. While he has scored some successes in fighting the militants and tackling graft, investor confidence in his economic policies have waned.
Budget Delays
“We see some scope for faster growth, forecasting the economy to expand by 3.8% this year,” David Faulkner, an economist at HSBC Holdings Plc in Johannesburg, said in a note to clients. “However, much will depend on Nigeria’s exchange rate policy, with the current foreign exchange and import restrictions -- imposed to stabilize the naira -- having a detrimental effect on economic activity and growth.”
Lower oil output and prices contributed to the industry contracting 8.28 percent in the fourth quarter compared with expansion of 1.1 percent in the third quarter, the statistics office said. Growth in the non-oil industry, which accounts for 90 percent of GDP, was little changed at 3.1 percent.
There is little to suggest the economy has improved so far this year, according to Manji Cheto, an analyst at Teneo Intelligence in London. While the government plans to boost growth with a record $30 billion budget, lawmakers are yet to pass it.
“Growth for the first quarter of this year could be worse because nothing has happened,” Cheto said by phone. “Government hasn’t yet ramped up spending since we don’t have a budget. The performance in this quarter will drag growth down for the rest of the year. It confirms that Buhari’s government has been very slow off the line.”

http://www.bloomberg.com/news/articles/2016-03-09/nigeria-gdp-confirms-what-central-bank-denies-naira-peg-hurts

7 Likes 2 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by cosby02(m): 10:56am On Mar 10, 2016
Waiting
Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by jerseyboy: 11:01am On Mar 10, 2016
Upside-down CHANGE

39 Likes 3 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by donnypool: 3:42pm On Mar 10, 2016
grin grin

1 Like

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by MrAboki: 3:43pm On Mar 10, 2016
Who be GDP?

Who GDP don help before? angry

7 Likes

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by hazyfm1: 3:43pm On Mar 10, 2016
I SEE...
Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by frankobaba(m): 3:43pm On Mar 10, 2016
.

1 Like

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by hazyfm1: 3:43pm On Mar 10, 2016
MrAboki:
Who be GDP?

Who GDP don help before? angry

Figures with little or no development to show

That was during the days of G oodluck the D aft P resident

I hope I have answered your question(s)

26 Likes

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by Monimatic(m): 3:44pm On Mar 10, 2016
Kai Buhari We Don Enter ONE CHANCE

15 Likes 1 Share

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by Nobody: 3:44pm On Mar 10, 2016
As far am concern, somebody prepare this nonsense report. Na today una they know say Nigeria nor dey export more than what we import? Mtchewww. Everyone looking for excuse to attach to increase in Naira rate to one dollars. Govt should allow flow of raw dollars into the economy and remove food from banks mouth then you will see real change in this dollar palava. Modafuckas angry

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Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by AK481(m): 3:45pm On Mar 10, 2016
[size=25pt]APC!!!!![/size]



























[size=25pt]CHANGE!!!!![/size]

25 Likes 3 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by Domnick(m): 3:45pm On Mar 10, 2016
MrAboki:
Who be GDP?
Who GDP don help before? angry
Village man spotted

31 Likes 4 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by dunkem21(m): 3:45pm On Mar 10, 2016
grin

1 Like

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by iffydave(m): 3:46pm On Mar 10, 2016
Hiaaan



Change in Action

28 Likes 4 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by thefakestan: 3:46pm On Mar 10, 2016
This one even the blind can see.




ThefakeStan

6 Likes 2 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by DrayZee: 3:46pm On Mar 10, 2016
Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by Nobody: 3:46pm On Mar 10, 2016
I dnt trust all these foreign journals that doesn't know what is on ground.nigerian economy is beyond their understanding
Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by nkowaputa(m): 3:47pm On Mar 10, 2016
I pity this country. I clamored during the election period that no serious organization that wants to move forward will use an old man 72 as her manager yet u people said Sai Buhari.
How many serious organizations have u seen technically headed by an Hausa apart from Nigeria institutions where they flood by quota system?
73 year old Hausa man who all through his life despite been in government could only boast of 150 cows and 900k, u put him in power and expect things to be good.
We are in it together.

53 Likes 7 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by monlawal(m): 3:48pm On Mar 10, 2016
All this western media should leave our country alone. We have to change jare. They want us to keep on borrowing from them
Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by Ik09: 3:49pm On Mar 10, 2016
MrAboki:
Who be GDP?

Who GDP don help before? angry

You're on the internet. You can google what GDP means and figure out how economic stagnation affects everyone.

11 Likes 2 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by felifeli: 3:49pm On Mar 10, 2016
MrAboki:
Who be GDP?

Who GDP don help before? angry

Ha!
OK I now remember I am on Nairaland.
Lalasticlala please post Unclad pictures of Tonto Dikeh for this man to read , since the man no understand grammar grin grin grin

17 Likes 4 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by repogirl(f): 3:49pm On Mar 10, 2016
Thankyou very much Booooooohari! angry

13 Likes 3 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by BekeeBuAgbara: 3:50pm On Mar 10, 2016
At least nobody will accuse Michael Bloomberg of being IPOB or PDP member.

33 Likes 3 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by slap1(m): 3:50pm On Mar 10, 2016
APC = All Promises Cancelled

26 Likes 5 Shares

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by brandymcmb: 3:50pm On Mar 10, 2016
K
Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by scanp(m): 3:50pm On Mar 10, 2016
Sai BABU grin

4 Likes 1 Share

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by jameseva: 3:51pm On Mar 10, 2016
Despite my support for PMB waning over the past few weeks owning to his abysmal silence on the grievous criminal and life-taking offences of the fulanis as well as several issues highlighted in his recent al-jazeera interview, I will however say F#CK this report! Nigeria is probably doing something right that is detrimental to their economy, projections or positions is why they'd write stuffs like this in the name of 'report'!! Know how the western media works and just take this as a pinch of salt!!

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Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by Leviseed: 3:51pm On Mar 10, 2016
Lie everywhere
Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by antispexish(m): 3:51pm On Mar 10, 2016
They sha want the naira devalued sha!. They will not succeed.!

4 Likes 1 Share

Re: Nigeria GDP Confirms What Central Bank Denies: Naira Hurts by TolaTosin: 3:52pm On Mar 10, 2016
kevinscore:
I dnt trust all these foreign journals that doesn't know what is on ground.nigerian economy is beyond their understanding
i just wish you would have said same if it happened under gej's watch

12 Likes 2 Shares

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