For almost one year, Nigeria’s economy has been brought to its knees. A drastic cut in the price of global oil price, sabotage of oil facilities and scarce forex means the Naira quickly lost some of its value and price of most commodities sky rocketed.
Of course, the combo of low oil price and sabatoge meant that the government experienced a dip in its revenues, resulting in it being unable to keep up with its spending. And in a country like Nigeria where government are the highest spenders in the economy, it all dovetailed into a drop in consumer spending which in turns affected the ability of businesses to invest in products and services.
As a result, businesses either folded up or move to other climes resulting in the loss of thousands of jobs. In summary, things generally got more difficult.
But a welcome lull in the activities of aggrieved militants who took to pipeline bombing, diversification and the rekindling of investor confidence may mean that Nigeria’s economy has finally shown its handlers signs that they can heave a sigh of relief.
According to World Economics, an organisation dedicated to producing financial analysis, insight and data relating to questions of key importance to the world economy, the economy has started showing encouraging signs of recovery and as a matter of fact, Nigeria may already be out of recession.
Information on its website reads;
“March Sales Managers’ Index (SMI) data suggests that the Nigerian economy is starting to grow out of the recession which saw 10 months of consecutive contraction. The Market Growth Index grew to 53.5 in March as the monthly Sales Growth Index edged up to 51.3, its highest value since March 2016. It is too early to speculate if the recovery is built on solid fundamentals for a sustained recovery but the changes reflected are not insubstantial. Price inflation for March, which is tracked by the Prices Charged Index, remained high at 61.3 – and indicative that very high levels of inflation continue. Overall, conditions in Nigeria have improved over the past month and managers are expressing optimism that the economy will continue to grow”.
|Market Growth Index
Sales Growth Index
|Sales Managers’ Indexes Trends
Prices Charged Index
This development is coming as the Central Bank of Nigeria (CBN) monetary policy committee (MPC) on Tuesday March 21 retained all monetary parameters rates.
The committee said inflation was down, year-on-year, but the food index rose in February from figures recorded in January, mounting pressure on consumers.
On Sunday, It was reported that the presidential spokesperson, Garba Shehu, said efforts to get the nation out of its present economic challenges are beginning to yield positive results, especially in agriculture.
According to him, an increase in the volume of rice production and processing across the country is already saving the country a lot of foreign exchange.
Is it time to start celebrating? Only time will tell.
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