After almost a year of negative growth that resulted in the collapse of businesses, the Nigerian economy is looking up, getting a pulse, meaning it’s the end of the recession, the World Economics has said.
According to a United Kingdom financial analysis organisation, World Economics, Nigeria is on its way out of recession, as April Sales Managers’ Index (SMI) data suggested that the “Nigerian economy is continuing to grow out of the recession which saw 10 months of consecutive contraction in 2016.”
It said: “April Sales Managers’ Index (SMI) data suggests that the Nigerian economy is continuing to grow out of the recession which saw 10 months of consecutive contraction in 2016.”
The London-based organisation dedicated to producing financial analysis, insight and data relating to questions of key importance to the world economy declared on Tuesday despite negative growth that oversaw the death of many businesses that the country’s economy is out of recession, but “conditions remain difficult for businesses.”
“Nigeria’s economy receded at the end of Q2 in 2016 after falling oil prices ate deep into the country’s earnings and caused the naira to weaken thereby causing inflation to spiral upward. Spates of attacks on oil installations in the Niger Delta by militants, who were protesting for better deals from the government, almost crippled oil production.
“But the government’s recent engagements in the oil-rich region, spearheaded by Vice President Yemi Osinbajo, has seen attacks on oil facilities petered out, at least, for now.”
Last Thursday, National Bureau of Statistics (NBS) said the inflation rate dropped by 0.5% in March to close at 17.26%. It was the second decline in two months.