Nigeria's economic crisis is getting worse.


On Friday the Nigerian Bureau of Statistics revealed that the country's economy shrank by 0.4% year-over-year in the first quarter — way worse than expected.


Economists were expecting the country to grow by 1.8% year-over-year, according to the Bloomberg consensus.


And now analysts aren't feeling too good about the situation going forward.


"We have long warned of a slow-burning crisis in Nigeria," Capital Economics' Africa economist John Ashbourne said. "It now seems that this view was too optimistic: the country is headed into a full-blown economic crisis."


Nigeria continues to suffer from numerous economic headaches, including lower oil prices and the government's controversial foreign-exchange and price-control policies (which analysts have more or less deemed a failure ).


The biggest drop in growth was in Nigeria's manufacturing sector, which Ashbourne wrote was crushed by the country's FX policies.


"This is very bad news for Nigeria's government, which has justified the current FX system as a method of promoting non-oil industries," Ashbourne said. "It is now clear that these policies have — as we'd long argued — made a bad situation worse."


Still, the scariest thing about this latest gross-domestic-product number is that it doesn't factor in any of the debilitating problems Nigeria has seen in the second quarter, including but not limited to the fuel-shortage crisis and some of the oil-production disruptions by the Niger Delta Avengers.

In short, Ashbourne concluded grimly, "the worst is yet to come."
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(Capital Economics)

etebefia:
This is really bad news

Sctests:
Every region of tribe that knows what is good for them should get their own country and a brand new valuable currency. Nigeria is dying off and the naira is useless, even worse the guy who calls himself president have destroyed what's left of it with his mundane utterances.

Jump out of the sinking ship while you still can. It is impossible for nigeria to forward than this. You don't suddenly become a manufacturing nation like US and china overnight. Use your heads. To you tents everyone! Go home and start afresh.

If the oil is making it impossible for this to happen, then I say more Gbuaaa! Gbuaaa! to the pipelines!

oduastates:
The destiny of the Nigerian economy was already in crisis the day Obasanjo handed the keys over to Yar adua and Jonathan.
The mindless stealing started when yaradua was still lying in coma on his death bed.Those one were busy stealing the budget. But Jonathan put it on nitro.Most states were incapable of paying for Jonathan's increase in minimum wage when oil was selling for N120 / barrel, how do you expect them to cope when oil has averaged $35 /barrel.
The devil has come to collect his debt.

dunkem21:



The article made no mention of GEJ, OBJ and Yaradua(God bless his soul) ..


They are treating Buhari's fvck up .. Or didn't you hear about controversial FX exchange and price control policies


You no see NDA .. SMH!

oduastates:


How did buhari Bleep up?
Their criticism is based on ideological ground. Neo Liberal capitalism. They are doing their thing in Brazil as we speak and going as far as organising what is essentially a coup.
Probably only 5 of those billionaires in Nigeria are involved in any activity that is socially useful.
The country can do without all those oil barons.in fact almost all of them are simply collecting rents ( rent seekers)
Give me your prescription to solve the problem.
Foreign airlines alone are waiting to remove 500 millions dollars from the Nigerian economy since you do not build anything ( good or services) of any significance.
I am wondering how much all the Syrian, Lebanese,Egyptian etc to whom road contracts are awarded, are waiting to remove.
Allowing the naira to float would have sent the economy into an instant death spiral and push ten of millions into poverty overnight . We all saw what happened Last week with the rumour of devaluation alone.
The answers are simple as it is common sense.
The Nigerian music industry.

1 Leave within your means ( government and people).
2 increase inflows and reduce outflows.
3 Protect your market.
4 Build, make and invent all you can yourself.

The modern Nigerian music industry started by copying.Then it evolved into conquering the local markets and Africa. It is now conquering( not dominating) the global market.

etebefia:
This is really bad news

oduastates:


How did buhari Bleep up?
The man has been basically fire-fighting since he got in power.
Their criticism is based on ideological ground. Neo Liberal capitalism which controls societies worldwide.They are doing their thing in Brazil as we speak and going as far as organising what is essentially a coup.
Probably only 5 of those billionaires in Nigeria are involved in any activity that is socially useful.
The country can do without all those oil barons.in fact almost all of them are simply collecting rents ( rent seekers)
Give me your prescription to solve the problem.
Foreign airlines alone are waiting to remove 500 millions dollars from the Nigerian economy since you do not build anything ( good or services) of any significance.
I am wondering how much all the Syrians, Lebaneses,Egyptians etc to whom road and other contracts are awarded, are waiting to remove.
Allowing the naira to float would have sent the economy into an instant death spiral and push ten of millions into poverty overnight . We all saw what happened Last week with the rumour of devaluation alone.
The answers are simple as it is common sense.
The Nigerian music industry.

1 Live within your means ( government and people).
2 increase inflows and reduce outflows.
3 Protect your market.
4 Build, make and invent all you can yourself. Learn from the mistakes to improve your product. Steal or borrow technology if you have to.
Case study
The modern Nigerian music industry started by copying.Then it evolved into conquering the local markets and Africa. It is now conquering( not dominating) the global market.
The likes of Kenny Ogungbe and Dayo Adeneye ( patriots) chose to use their platform to monopolise the air waves and forced Nigerians to listen to made in Nigeria music.
Nowadays, those plantashun Boyz and Tony tequila music will be regarded as trash.
Anyone who tells you that you can import your way, or build hotels your way to prosperity is only. deceiving you.
The greatest achievement of China's great leap forward was changing the mentality of their people.

mrvitalis:
the funniest thing is this, Nigerians just love imported good more than there own.. .
We had this wrong definition of LOCAL and it really took a toe on us
Will I eat LOCAL rice?? For what am too rich for that
Why should I buy ABA jeans, smh it's for poor people
That's the simple definition of Nigeria problem

dearpreye:


We weren't brought up to regard and value our own. We weren't brought up to be producers. We were brought up with a consumption mentality; a kind of poverty mentality.

It will take us decades of reprogramming to get to us become a productive nation. Otherwise poverty, hunger and underdevelopment shall continue to be our portion.

As it is, Nigeria isn't a country but a business venture.