Nigeria’s growth drops, but oil looking up

Nigeria’s growth drops, but oil looking up

The latest figures showed that the gross domestic product shrunk by 1.5% last year, largely due to oil production disruptions

Nigeria’s battered economy suffered a year-long contraction in 2016, official data showed Tuesday, but the oil sector showed signs of recovery, raising hopes for an end to recession.

The latest figures showed that the gross domestic product shrunk by 1.5% last year, largely due to oil production disruptions caused by attacks on infrastructure by militants demanding a greater share of revenues.

“This contraction reflects a difficult year for Nigeria,” said the National Bureau of Statistics, citing high inflation, low reserves of foreign exchange and a weak Naira.

The economy shrunk by 1.3% in the fourth quarter alone, the figures showed.

But the slowdown in the oil sector eased as a result of ongoing government negotiations with rebels, who have stopped attacks on oil pipelines in the country’s restive southern swamplands.

Nigeria slid into its first recession in decades last year after rebels renewed attacks, hitting production and exacerbating revenue shortfalls from a sustained slump in global crude prices.

Nigeria relies on export sales for around 70% of government revenue and the bulk of its export earnings.

If oil output holds steady or increases, Nigeria’s economy is expected to grow in 2017, though growth in the non-oil sector will continue to suffer from a triple-whammy of double-digit inflation, foreign exchange shortages and sputtering electricity.

SOURCE: AFP

Facebook Comments

About author

Nigerians in South Africa
Nigerians in South Africa 1725 posts

We are about democracy, human rights, public opinion, political behavior, civil rights and policy aimed at improving the human condition, with a focus on African countries.

You might also like

INVESTIGATIONS COMPLETE IN PASTOR TIMOTHY OMOTOSO HUMAN TRAFFICKING CASE

Investigations are complete in the human trafficking case against Nigerian televangelist Pastor Timothy Omotoso. The Port Elizabeth Magistrate’s Court heard on Wednesday morning that the matter had now been referred

NIGERIANS SHINE IN AMERICAN SPORTS

It is no longer news that Nigerians have become the leading lights of American sports in the United States of America. There are more Nigerian immigrants in the United States

Politics 0 Comments

SOUTH SUDAN TO SIGN OIL EXPLORATION DEAL WITH SOUTH AFRICA

South Sudan and South Africa will sign a production sharing agreement for an untapped exploration block in the East African country, whose production has been hampered by civil war, South

0 Comments

No Comments Yet!

You can be first to comment this post!

Leave a Reply