Nigeria’s resilient private sector has helped the economy to exit recession in the fourth quarter with a growth of 0.11 per cent.
However, there are concerns about the country’s structural problems in the form of foreign exchange pressures, relatively lower oil prices and production, subdued global demand, spiralling consumer prices, repressed purchasing power, heightened unemployment levels, weak investor confidence, worsened insecurity and social tensions.
The country’s Gross Domestic Product (GDP) grew 0.11 per cent in the three months through December from a year earlier, compared with a decline of 3.6 per cent in the third quarter, according to data from the National Bureau of Statistics (NBS) yesterday.
Though weak, Nigeria’s exit from recession was driven by the non-oil sector, especially the Information and Communication (Telecommunications & Broadcasting). Other drivers were agriculture (crop production), real estate, manufacturing (food, beverage & tobacco), mining and quarrying (quarrying and other minerals), and construction.
On the contrary, average daily oil production of 1.56 million barrels per day (mbpd) was recorded in the fourth quarter, lower than the daily average production of 2.00mbpd recorded in the same quarter of 2019 by -0.44mbpd and the third quarter of 2020 by – 0.11mbpd.