Subscribe
AEC Quarterly
No Result
View All Result
  • Big Story
  • Opinion
  • Energy
  • Interviews
  • Africa
  • Investment
  • Big Story
  • Opinion
  • Energy
  • Interviews
  • Africa
  • Investment
No Result
View All Result
AEC Quarterly
No Result
View All Result

Nigeria Economic Growth Picks Up as Oil and Factory Output Rise

2 years ago
Reading Time: 3 mins read
Source: Bloomberg

Related articles

Nigeria records 5.01% GDP growth in Q2 2021

OPay valued at $2 billion, becomes Nigeria’s latest Unicorn

Nigeria’s economic growth quickened in the first quarter as oil output started to recover and manufacturing production increased for the first time in a year.

Gross domestic product in the continent’s biggest oil producer expanded 0.5% in the three months through March from a year earlier, the Abuja-based National Bureau of Statistics said in a report published on Twitter on Sunday. That compares with 0.11% growth in the fourth quarter.

Nigeria's economic recovery continued in the first quarter

The median of three economists’ estimates in a Bloomberg survey was for an increase of 0.9%. The slow pickup in growth could reinforce central bank Governor Godwin Emefiele’s view that it’s still too early to increase the key interest rate from 11.5%.

Emefiele has said the monetary policy committee can only shift to fighting inflation that’s at an almost four-year high once the economy’s recovery from last year’s recession gains some traction. The MPC starts a two-day meeting on Monday and Emefiele will announce the outcome of the deliberations on Tuesday.

Bloomberg Economics says that they still expect a modest rebound this year, with GDP on track to recover by more than 2%. Inflation is also expected to remain above target. However, they don’t expect the Central Bank of Nigeria to hike rates until later in the year, when it is confident in the strength of the recovery.

Crude output rose to 1.72 million barrels per day in the first quarter from 1.56 million in the last quarter of 2020. But production is still below what it was before the coronavirus-linked lockdowns decimated demand and prices fell. Oil GDP contracted by 2.2% compared with a drop of 19.8% in the previous three months.

While oil contributes less than 10% of the country’s GDP, it’s a key driver of growth and provides most of the hard currency needed to power other industries and finance the government.

The non-oil economy expanded by 0.79% from a year earlier, picking up pace with manufacturing growing 3.4% and telecommunications increasing 7.7%.

Inflation unexpectedly eased in April for the first time in nearly two years, but at 18.1% it’s still double the top of the central bank’s target range. The rate has remained high even with economic underperformance since the oil crash of 2014. GDP could grow 2.5% this year and 2.3% in 2022, according to the International Monetary Fund.

“The MPC will be emboldened to keep monetary policy rate steady given the lower inflation” and positive growth number, said Gbolahan Taiwo, an economist with Stanbic IBTC Bank in Lagos.

Source: Bloomberg
Tags: economyNigeriaoilrise
Share122Tweet77Share31
Previous Post

Rwandan woman admits to recruiting girls for rebels

Next Post

Eritrea viewpoint: I fought for independence but I’m still waiting for freedom

Related Posts

Nigeria records 5.01% GDP growth in Q2 2021
Business

Nigeria records 5.01% GDP growth in Q2 2021

August 26, 2021
OPay: Nigeria's Latest Unicorn Founders
Business

OPay valued at $2 billion, becomes Nigeria’s latest Unicorn

August 24, 2021
IMF Chief announces historic SDR Allocation
Business

Nigeria to receive $3.35 Billion in historic IMF SDR Allocation

August 24, 2021
Pngme
Business

African Fintech Pngme raises $15million in Series A round

August 19, 2021
South African President Cyril Ramaphosa
Africa

5 Things Happening in South Africa Today

August 19, 2021
Shell to compensate 30-year old case
Energy

Shell ordered to pay $110M in Oil Spill Compensation

August 12, 2021

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Post

  • 5 Young African Entrepreneurs to look out for in 2021

    5 Young African Entrepreneurs to look out for in 2021

    317 shares
    Share 127 Tweet 79
  • Meet Cira-O3, Egypt’s COVID-19 Robot Nurse

    313 shares
    Share 125 Tweet 78
  • Winning in the African Oil and Gas Industry

    312 shares
    Share 125 Tweet 78
  • Africa claims Top 3 spots for the Highest Concentration of Women Entrepreneurs in the World

    312 shares
    Share 125 Tweet 78
  • Assessing Africa’s Digital Response Strategy to COVID-19

    311 shares
    Share 124 Tweet 78

Recommended

Vodafone

Vodafone in Ethiopia secures up to $500m in loans despite the pandemic

January 11, 2021
INTERPOL

Interpol intercepts over 5000 jabs of fake COVID-19 vaccine in China, South Africa

March 4, 2021

Sign Up For AEC Quarterly Newsletter

Get our most compelling stories delivered straight to your inbox.

AEC Quarterly

AEC Quarterly is a great read for investors looking for new opportunities with articles and reports exploring growth, creativity and entrepreneurial spirit.

  • Big Story
  • Africa
  • Opinion
  • Energy
  • Finance
  • Interviews
  • Home
  • About
  • Contact
  • Get Featured in AEC Quarterly Magazine

© 2020 AEC Quarterly. All Rights Reserved. Use of this site constitutes acceptance of our, Terms of Use and Privacy Policy.

No Result
View All Result
  • Big Story
  • Opinion
  • Energy
  • Interviews
  • Africa
  • Investment

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

Go to mobile version