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Tag: recession

  • Nigeria will exit recession by 2018 if…Yemi Kale

    Nigeria will exit recession by 2018 if…Yemi Kale

    The Statistician General of the Federation and Chief Executive Officer, National Bureau of Statistics (NBS), Dr. Yemi Kale has stated the conditions for Nigeria to exit the current economy recession by 2018.

    Kale spoke in a chat with Economic Confidential at the weekend in Abuja.

    “If oil prices do not collapse and Niger Delta remains peaceful, by 2018 we would have recovered. It was an extremely difficult period and we all felt it. I will say that most of the indicators suggest that we are coming out of it”, Kale assured.

    “We have not come out of it yet. As if the worst has already happened and it’s a low process of recovery. Now there is what we call technical recovery as different from the recovery Nigerians would prefer.

    “When you tell somebody, the economy is coming out of recession, they would say what do you mean. After all prices are still high. Coming out of recession means positive growth.

    “And your positive growth can be plus zero point one (+0.1). That does not mean everything is fine. It technically means you are no longer in negative again”, said Kale.

    He further posited that “the fact that we are no longer in negative does not translate to be buoyant”, stressing that there is going to be a gradual process of recovery as things are improving.

    “At least all the indicators are suggesting things are getting better. People always make this mistake when we say inflation is slowing down. Slowing down of Inflation does not mean prices are coming down.


    “But I can tell you 16% is not good but a huge problem. If the trend continues, by the end of the year things should have normalized and by 2018 Nigerians would now see the benefit of the recovery”, he noted.

    The official further likened the economy to a house built on three foundations, of which two were weak.

    “You have an oil sector which is one pillar, a non-oil sector dependent on oil, which is the second pillar, and we have a non-oil sector not dependent on oil, like agriculture, which is the third pillar.

    “Two pillars are directly dependent on oil. So when oil decides to collapse, two legs will be gone and remaining one pillar. And that is the problem we had

    “Rather than diversify the economy, we have an economy solely dependent on oil. The other sectors depend on oil to survive. We have manufacturing, but their production input is dependent on foreign materials. And foreign input depend on foreign reserves, while our foreign reserves depend on oil.

    “When oil price goes down, and we do not have enough reserves, and manufacturers do not get foreign exchange to get their inputs, they cannot produce and so resort to black market to source for foreign exchange at high price and cost of production goes up.”

  • JUST IN: South Africa slips into recession

    JUST IN: South Africa slips into recession

    South Africa has entered recession for the first time in eight years, data from Statistics South Africa showed on Tuesday.

    Data from Statistics South Africa in Pretoria showed the first quarter contraction was led by weak manufacturing and trade.

    The data showed that South Africa’s economy contracted by 0.7 per cent in the first three months of 2017 after shrinking by 0.3 per cent in the fourth quarter of last year

    The worst performing sector was trade, catering and accommodation, which contracted by 5.9 per cent, while manufacturing – one of the key sectors – fell by 3.7 per cent.

    Standard Chartered Bank’s Chief Africa Economist Razia Khan said the “awful” data showed weakness where it was not expected.

    Analysts said the contraction suggested high unemployment and stagnant wages were dragging down South Africa’s long-resilient consumer sector.

    “The slowdown in first quarter was due to much worse results from usually stable consumer-facing sectors that had been the key drivers of growth in recent years,” Capital Economics Africa economist John Ashbourne said.

    Political instability, high unemployment and credit ratings downgrades have dented business and consumer confidence in South Africa and the rand extended its losses against the dollar, while government bonds also weakened.

    Pressure on President Jacob Zuma, including from within the ANC, has risen since a controversial cabinet reshuffle in March that led to downgrades to “junk” status by S&P Global Ratings and Fitch.

    Zuma has denied any wrongdoing over the allegations.

    Corruption allegations escalated when local media reported this week on more than 100,000 leaked emails they say show inappropriate interference in lucrative tenders.

    “Our economy is now in tatters as a direct result of an ANC government which is corrupt to the core and has no plan for our economy,” Mmusi Maimane, the leader of the opposition Democratic Alliance said.

    South Africa’s Treasury said it would work to finalise policies critical for boosting confidence and economic growth.

     

     

    Reuters/NAN

  • Nigerians yet to feel improving economy, says Archbishop

    Nigerians yet to feel improving economy, says Archbishop

    The Catholic Archbishop of Lagos, Most Rev. Alfred Martins says Nigerians have yet to feel the effect of the nation’s economy coming out of recession.

    Martins spoke at a news conference to mark his 58th birthday at the Holy Cross Cathedral, Lagos, on Thursday.

    The archbishop said that Nigerians continued to face hard times, despite government’s assurance that the economy was gradually moving out of recession.

    He said: “While this is gladsome to hear, the reality is that the impacts are yet to be felt at the grassroots. The cost of living is very high; workers are being retrenched daily.

    “Even some of those still working are not being paid, both in the public and private sector; the power sector is in a comatose. The effects of all these on the poor masses of this country can better be imagined.

    “We know efforts are being done to address all these, but Nigerians are tired of promises; they want to see results.

    “In the past we have been given promises of palliatives being put in place to bring immediate relief to the masses, but we are yet to feel the impact, or is this another case of policy somersault?’’

    Martins said the Acting President, Prof. Yemi Osinbajo, in his Democracy Day address, however, gave account of the federal government’s efforts to move the nation forward.

    “He pinpointed security as one key area that the present administration has performed credibly well.

    “Let me use this opportunity to commend the government for the victories recorded against the insurgent and for securing the release of about 125 of the kidnapped Chibok girls.

    “We urge them not to rest on their oars until the remaining girls are brought home safely,’’ he said.

    The cleric, however, said the incessant armed herdsmen attacks across the country which had led to loss of lives and properties worth millions needed urgent attention.

    “All efforts must be made to stem the tide of their activities and bring them to book; every Nigerian deserves to live in peace and wherever they choose to live in the country,’’ Martins said.

    On his 58th birthday, the archbishop said he could not but thank God for granting him the grace and privilege to serve in His vineyard.

    “Indeed, every of our lives is important and should be lived to the glory of God by impacting positively on as many lives as possible.

    “Though times are hard and some days may be frustrating, we must always learn to live with faith, placing all our burdens and hope on God.

    “ Counting our blessings, naming them one by one, these, I have committed myself doing, such that whatever may come my way each day, I know my life is secured in His,’’ he said.

  • Recession: FG to shut down five foreign missions

    In a smart approach to cut the cost of maintaining its 119 missions worldwide, the Federal Government said it had identified five foreign missions it would shut down.

    The Minister of Foreign Affairs, Mr. Geoffrey Onyeama, said this in Abuja on Thursday while briefing newsmen on the achievements of the current administration in the past two years.

    Onyeama, who did not identify the embassies to be shut down, said the process for closure was underway and was also subject to the approval of the President.

    “We do not want to indicate the embassies that will be closed yet because we are in the process of submitting the proposals, the cost analysis and also the political analysis we did to the President.

    “When he sees that, he may or may not want to close some, so we have not yet reached the stage of closing some,” he said.

    The minister noted that closing the foreign missions was “extremely expensive.”

    “The expense, costs of closing embassies is so high and prohibitive but in the long run, it will be more economical,” he stressed.

    The minister added that the closure of the missions was in line with the agenda of the administration.

     

  • Recession: We’ll come out bigger, stronger — Osinbajo

    The Acting President, Prof. Yemi Osinbajo, on Thursday assured investors that the country would come out of economic recession stronger and bigger with its Economic Recovery and Growth Plan (ERGP) policy.

    The acting president gave the assurance at the Presidential Policy Dialogue Session, organised by Lagos Chamber of Commerce and Industry (LCCI) in Lagos.

    According to Osinbajo, the whole objective of ERGP is to restore growth, invest in Nigerians and build competitive economy.

    “In order to achieve this objective, we have clarified five areas of actions.

    “This includes to stabilise macro-economic environment and achieve agriculture and food security.

    “Ensure energy sufficiency in power and petroleum products, improve transportation infrastructure and drive industrialisation, especially by leveraging on Small and Medium Entrepreneurship (SME).

    “Of course, we are setting up a Presidential Delivery Unit that will be tasked with integrating the economic recovery programme and ensure that the progress is measurable and the implementation is stead fast,” he said.

    Osinbajo, who was represented by Dr Okechukwu Enelamah, the Minister of Industry, Trade and Investment, said the country was witnessing a challenged economy.

    Osinbajo said government was committed to improving power sector and creating friendly environment for businesses.

    Earlier, Dr Nike Akande, the President of LCCI, said the chamber was delighted to observe that the short to medium term outlook for the Nigerian economy was much better than what it was this time last year.

    According to Akande, this is the outcome of the series of new policy initiatives, engagements and consultations with key stakeholders and some positive developments in the external sector.

    She commended the government’s responsive disposition which had led to some policy reviews.

    “The foreign exchange policy has been reviewed to reduce the volatility in the foreing exchange (FOREX) market and minimise uncertainties.

    “Investors’ confidence is on the upswing, liquidity in the FOREX market has increased, there is better clarity in the policy direction, FOREX inflows are beginning to pick up.

    “We are also very confident that recent government initiatives on the ease of doing business would impact positively on the economy, “she said.

    She commended the Federal Government for setting up the Presidential Ease of Doing Business Council (PEBEC) with Acting President as the Chairman.

    Akande said the chamber applauded the recent Executive Orders targeted at enhancing the investment climate and improving Ease of Doing Business in Nigeria.

    Akande, however, drew the attention of the acting president to the power sector reform, which after four years, had not met the expectations of the business community and the citizens.

    She urged the government to intervene and restore sanity in the sector.

  • Failure to diversify economy during oil boom, triggered Nigeria’s recession – CBN

    Failure to diversify economy during oil boom, triggered Nigeria’s recession – CBN

    The Central Bank of Nigeria, CBN, has said the country slipped into recession because previous administrations refused to save and diversify the economy during the oil boom days.

    The apex bank noted that recently there has been a major decline in the prices of oil globally and this has further worsened the economic depression in the country.

    This was revealed by the apex bank’s acting director, corporate communication Isaac Okorafor on Thursday via a virtual sensitization programme on steps taking so far by the apex bank to end recession in the country.

    The programme which was moderated by economist @TunjiAndrews and CBN Director Corporate Communication @IsaacOkorafor on Twitter also answered questions from the general public on diverse issues as it relates to the economy and other sundry issues.

    The programme which is ongoing (CBNTweetMeet2017), is themed Exiting recession: which way Nigeria?

    The virtual programme is closely monitored and covered by TheNewsGuru.com.

    More details shortly…

  • Nigeria may face bigger problems than recession if…Prof Garba

    Nigeria may face bigger problems than recession if…Prof Garba

    By Oyibo Ediri

    Professor Abdul-Ganiyu Garba has said the country may face bigger challenges if the leaders fail to create an environment where peace and justice reign.

    Garba noted that the recession currently rocking the economy is a sign of grave problems to come.

    Garba made this statement at “The Platform” organised by Pastor Poju Oyemade’s Covenant Christian Centre.

    He said challenges facing the nation are not restricted to the economy, stressing that solving the economic challenges demand wisdom, knowledge and understanding.

    He further stated that while majority are bitterly affected, some few others are selfishly benefitting from the crisis.

    In his words: “Not everyone dislikes recession because to some, the recession is an opportunity”.

    He urged the government to intervene before the economy plummets to what is irredeemable, resounding these words: empires rise, empires fall.

    He said there is going to be discord across the land if things do not get right, stressing that the people are bound to revolt in a nation where disparity reigns high.

    “If leaders fail to create the environment where peace and justice will thrive, there will be bigger issues to handle than economic issues”, Garba said

    Also speaking at the speaking at the event, Prince Bimbo Olashore said the Nigerian economy is presently heading out of recession, and expressed optimism that by the end of the second quarter, Nigeria would be out of recession.

     

  • Nigeria gradually getting out of recession – Lai Mohammed

    Nigeria gradually getting out of recession – Lai Mohammed

    The Minister of Information and Culture, Alhaji Lai Mohammed has said that Nigeria is gradually moving out of recession.

    Mohammed, represented by the Managing Director of the News Agency of Nigeria (NAN), Mr Bayo Onanuga, made the assertion at the biennial convention of the Nigerian Guild of Editors in Lagos on Saturday.

    He said that going by a recent statement by the Central Bank Governor, the country would exit recession by the end of June.

    “ There have been other pointers for the good news as well. For two consecutive months, the National Bureau of Statistics has also reported a fall in inflation rate.

    “ The exchange rate is regaining some sanity.

    “ As I said earlier, the worst appears to be over. We are clawing out of the woods of recession in weeks from now,” the minister said.

    Mohammed said that the Buhari administration and collective will of Nigerians had shamed doomsday prediction that our recession could worsen into a depression.

    “ I hope, in our various media, we shall begin to focus more on the positive developments in our economy, the growth in agriculture and mineral development, since the NBS last year, let out the secret that the Nigerian economy recorded a negative growth in the first quarter of 2016, “ he said.

    The minister said that recession was not peculiar to the country.

    He said that the United States of America had experienced 47 recessions, some regressing into depressions.

    “ Between 1980 and 2007 alone, the American economy experienced five recessions. The last one in 2007 was caused by the subprime mortgage crisis and led to the collapse of the US housing bubble,” he said.

    Mohammed urged the media to stop the blame game and educate Nigerians on the efforts being made to end recession.

    “ Informing the people that the government is working hard to end the recession will go a long way to give hope to the people.

    “After all, it is said that ”if you keep hope alive, it will keep you alive” the minister said.

     

     

    NAN

  • Recession: what other states can learn from Lagos – Reps

    As Nigeria gradually makes its way out of economic recession, the House of Representatives on Wednesday commended the Lagos State Government’s role, saying that the success story of the State was not only benefitting residents, but helping to get the nation’s economy back on track.

    Chairman of the House of Representatives Committee on Economic Recession, Hon. Olabode Ayorinde who said this when he led members of the Committee on a courtesy visit to Governor Akinwunmi Ambode at the Lagos House in Ikeja, said the State currently dictates the pace of the economy in Nigeria.

    While congratulating the Governor on his developmental strides in the last two years, Ayorinde said other States could learn from the template Lagos deployed to tackle the economic recession.

    He said, “We take legislative notice of the serious development that is going on in Lagos State and with your permission, we don’t mind interacting with those that are in charge perhaps there are one or two things that we can recommend to other states in the nation because in togetherness we can only move this nation forward.

    “Talking seriously, the economic power of Lagos State also dictates the pace of the economy in Nigeria. Some of the steps that Lagos is taking now, some other States that have not been able to pay salaries may not be able to take such steps.

    “We are looking at this nationally; for example, if an industry is working in Lagos that is employing about 5000 persons I am sure that the company will not employ only citizens of Lagos State. So, it is to the benefit of Nigeria and if the Gross Domestic Product (GDP) of the country increases, it is not a factor of where it comes from, wherever the economy has been improved, it is national income and Nigeria will be better for it”.

    Earlier, Ayorinde said he was in Lagos with his team to inspect some of the moribund industries in the State, with a view to coming up with appropriate legislations that would help them get back in business.

    Responding, Governor Ambode said his administration intensified its capital expenditure to reflect the State’s economy, noting that 60 percent of its budget last year was ploughed towards infrastructural projects in all parts of the State to tackle recession.

    He said such projects contributed significantly to keep the State’s economy afloat with low income earners engaged, adding that it was important for government at all levels to keep spending on infrastructure.

    “Every contract or construction that you see in the nooks and crannies of Lagos, there is a bricklayer that is employed; there is a driver that is driving lorry load of sand; there is that food seller that is giving the workers some food and a minimum of N5,000 in every household has a multiplier effect on the economy.

    “So, that is the sure way that we have done this and we have not kept that development in one area, we have replicated it in all the senatorial zones so that those living in Badagry can earn income in Badagry and actually improve on the economy.

    “This is what we think should be replicated by other States in the country and even at the national level.

    “You need to spend your way out of recession and that is why it appears there is nothing like recession in the city of Lagos,” Governor Ambode said.

    The Governor also said that his administration invested massively on security and reviving a 24/7 economy for the State through the Light Up Lagos project, saying that such was important for the economy to thrive.

    Besides, Governor Ambode called for convergence between fiscal and monetary policies to tackle recession, while also urging lawmakers to come up with legislations that would take people out of poverty.

    “I want to enjoin our legislative house that we need to fast-track some of our legislations that are really people-driven and also back us in terms of the executive decisions that will take us out of recession,” he said.

     

     

    *PRESS RELEASE

  • We are optimistic Nigeria’s recession will end by third quarter – Emefiele

    We are optimistic Nigeria’s recession will end by third quarter – Emefiele

    Governor of the Central Bank of Nigeria, Godwin Emefiele, has said Nigeria will be out of recession by the third quarter of this year.

    The CBN governor said this after meeting with the leadership of the Senate in Abuja on yesterday.

    Emefiele said efforts by the Federal Government has shown that the country’s economy will experience a boost.

    He added that the CBN would continue its foreign exchange intervention, adding that efforts by the apex bank so far had been yielding positive results.

    “We are very much optimistic that by the end of the second quarter, or latest the third quarter, we should be out of recession that we are in right now,” he said.

    While briefing journalists after the meeting, Emefiele said discussions were held between the apex bank and the legislature on the current state of the economy.

    He said, “Actually, the Senate President invited us to come and brief the Senate leadership in a closed session and to provide some updates on the foreign exchange markets. You would have observed that in the last two months, the central bank has been involved in some form of intensive intervention in the foreign exchange market and this has fortunately resulted in a downward trend in the parallel market price of foreign exchange, from as high as N525 to a dollar to as low as N370.

    “Right now, it hovers between N370 and N380. I think it’s an opportunity for me to say that we are going to continue this intervention because the reserves look very good. As I speak to you, our (external) reserves stand at above $31bn and that provides us enough of firepower or ammunition to be able to defend the currency, and we will do so with all intensity to ensure that foreign exchange is procured by everybody.

    “If you want to import raw materials, you will get foreign exchange; you want to import plant and equipment, you will get foreign exchange; you want to pay school fees or you are a small business that wants to buy foreign exchange for you to import your small items, you will procure foreign exchange.”

    Emefiele spoke on the CBN policy for foreign investors in the country’s forex market.

    He said, “It is the market or window that is opened for them to bring in their foreign exchange and come into the market on what we call a willing-buyer, willing-seller basis, in which case there will be no form of any price intervention by anybody, including the Central Bank of Nigeria.

    “Indeed, with the kind of firepower that we have, we are also going to play in that market to ensure that as the prices move on based on the managed float regime that we run, we should be able to control the price based on the willing-buyer, willing-seller basis.”