“Nigeria’s economy accelerated to 2.4 percent in Q4’18, but momentum in non-oil sector very weak,”

Date:

LAGOS – Nigeria’s economy grew in 2018 at its fastest pace since a recession two years earlier, data showed, just days before a presidential election in which boosting growth has been a major campaign issue.

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Gross domestic product grew by 1.93 percent last year, up from 0.82 percent in 2017 and just short of the government’s 2 percent projection, the National Bureau of Statistics said on Tuesday. It grew 2.4 percent in the fourth quarter.

A Reuters poll of analysts had forecast growth of 2.1 percent, saying growth was expected to slow as investors held off before the elections.

Nigerian stocks rose 2.14 percent to a three month high after the statistics office released the GDP data.

Economic growth has been recovering since the third quarter of 2016, when the recession bottomed out. Higher oil prices helped Nigeria exit that contraction.

“Nigeria’s economy accelerated to 2.4 percent in Q4, but momentum in the non-oil sector remained very weak,” John Ashbourne, senior emerging markets economist at Capital Economics in London, said in a note.

“Low oil prices will weigh on growth in 2019, but the longer-term outlook depends heavily on the result of Saturday’s presidential election.”

The election is expected to be a tight contest between President Muhammadu Buhari and Atiku Abubakar, a former vice president. More than 60 other candidates are running but are given little chance of winning.

Buhari has made rejuvenating the economy a key issue, hoping his record can secure him a second four-year term in office. Abubakar has touted pro-business policies, including floating Nigeria’s currency, the naira.

Budget Minister Udoma Udo Udoma, said GDP data showed that he economy was recovering, although growth is not where the government wants it to be. He said the result was in line with improvements in inflation, data that is due to be published this week.

The World Bank had expected growth to be slightly less than 2 percent this year as the elections kept foreign investors away.

The non-oil sector grew 2 percent in 2018, more than the oil sector, which rose 1.14 percent from January to December, the NBS said. Oil production stood at 1.91 million barrels per day in the fourth quarter.

Additional reporting by Alexis Akwagyiram and Camillus Eboh in Abuja; editing by Larry King

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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