₦airaland Forum

The dismal gross domestic products (GDP) and job reports, besides the current high inflation levels (13.7 per cent) clearly show that the government’s economic policies are not effective and require an urgent review to avoid further plunge in economic activities, analysts have warned.

The National Bureau of Statistics (NBS) last week released the nation’s economic scorecard for the first quarter of the year – GDP and Unemployment Reports.

The GDP report depicts that the nation’s economy plunged into negative territory with a decline of 0.36 per cent year-on-year (y/y) in real terms.

The growth rate is 2.47 per cent and 4.32 per cent lower than what was achieved in the last quarter of 2014 and corresponding period of 2015 respectively.

In nominal terms, the total value of the nation’s economy was put at N22.26 trillion in the first three months of the year.

Assessing the Q1 GDP number, analysts at Eczellon Capital Limited stated that the first quarter figures have set the tone for the nation to enter into an economic recession by the end of the first half of the year as the weaknesses in the non-oil sector (Manufacturing & Financial services) are still very inherent.

They stressed that the continued contractions in the nation’s manufacturing and financial services sectors indicate that the current faulty foreign exchange structure in the country continues to weaken economic activities. This, they said, is forcing more manufacturers to shut down factories as well as limit the ability of financial institutions to expand credit in the economy.

“The spill-over effect of this is the primary driver for the rising rate of unemployment in the country. Thus, as the Monetary Policy Committee (MPC) of the CBN commences its meeting on Monday(today) it is imperative that the Committee takes a decisive stance to alter the nation’s current FX policy to allow for flexibility in the pricing of the naira.

“This should go a long way in addressing the uncertainty currently bedevilling the nation’s economy as well as attract the much needed inflows to support the nation’s economic growth. Likewise, it would complement the newly introduced price regime in the downstream petroleum sector and aid the government in achieving the objectives of its 2016 expansionary programmes,” they stated.

The NBS, however, had explained that the weak economic growth numbers could be attributed to a 5.77 per cent fall in the performance of the non-oil sector, which effectively puts  its real growth rate at negative (-) 0.18 per cent in Q1 2016.

“Contractions in manufacturing (7.0 per cent), financial services (11.3 per cent) and Real Estate services (4.7 per cent) were the principal drivers for the sharp decline in the non-Oil sector. The Oil sector on the other hand, however, expanded by 1.89 per cent, which is an improvement from the 8.28 per cent and 8.15 per cent recorded in Q4 2015 and Q1 2015 respectively. This came surprising given record low oil prices at the beginning of the year coupled with marginal decline in the nation’s oil production to 2.11 million barrel per day from 2.16 million barrel per day in the last quarter of 2015.

“In terms of jobs, the nation’s economy performed woefully as well, as unemployment rate rose to 12.1 per cent in Q1 2016 from 10.4 per cent in Q4 2015. Underemployment also increased to 19.1 per cent from 18.7 per cent in the last quarter of 2015. The poor job numbers were on the back of 1.9 per cent expansion in the country’s labour force as well as 340,000 net reduction in the number of persons in full-time employment. This could be attributed to the inherent weaknesses in the Nigerian economy which is clearly having a toll on businesses and the nation’s ability to create jobs for its teeming young population,” the NBS said.


http://www.thisdaylive.com/index.php/2016/05/23/fgs-economic-policies-pushing-nigeria-into-recession-analysts-warn/

hmm! there's fire on the mountain

Wailing wailers ..... Nigerians deserves their leaders.

Economic policy; hide all monies in cbn, never release them till most people are dead

instead of the administration to go back to work, they will be blaming past administration. from the statistics report above, it very clear that the bad economics policy by this administration that is plugging Nigeria to economy recession. Even the oil price they are using as cover even did well the quarter under review, the problem was from Non oil sector due to wrong policy on Forex. Blind supporter of the Buharist over to you.----Zombies

Economic policy kwa?
Do dey have any?

pabloid:
Economic policy; hide all monies in cbn, never release them till most people are dead

I tire ooooh

Then dey made sure that d finance minister is clueless eg not knowing the amount in our ECA.

And dey said she is better than NOI.

Honestly I don't know y Yorubas 2 dey like disgrace demselves. In front of dis Hausa pple.

Wallahi dey go leak dre Nyash one day.


Oya suffersticat'eed pple start 2 dey quote me Jare.

Bubuhari dont mean well 4dis nation aside his cluelesnes he is causin alot of hate n disunity in dis country he is so arogant he will never listen2advise he cant even acess his email he jst rule nigeria like a dictator he blivs in himslf alone alot of gud memos n official request are lying down on his desk dats if d pipu close2 him have d balls 2show him dis urgent proposals dat can help dis economy back gradually because he came in cancel all govt gud economic policies n uptill NW there is no 2016 fiscal policy circular wat apology of a president

I can't wait for God to solve this problem for us just like he did with Abacha. To God I pray.

The dullard is now certified deaf but even if he wasn't can his low IQ and illiterate mind contemplate and fully appreciate all this economic mumbo jumbo?

The man is best suited for cow grazing.

Tell that to the deaf president nd his economic team.I wonder how a president would be without an economic policy.he keeps screaming I would pight kwarrapzan so that zombie would hail him,leaving the economy to die,now those avengers are bombing the oil we can depend on.bubu is badluck

VulgarVulvas:
The dullard is now certified deaf but even if he wasn't can his low IQ and illiterate mind contemplate and fully appreciate all this economic mumbo jumbo?

The man is best suited for cow grazing.

Government Economic Policies | The Banking Sector - The Nigerian financial system has always been backed up by the government economic policies, it has developed to its present stage by readily responding to the various government economic policies formulated at various times.

Buhari is a course to Nigeria. our prayers is for 2023 to come fast