PARIS OLYMPIC GAMES
By Ajuma Edwina Ameh
President Muhammadu Buhari has hailed the recent report by the Nigerian Bureau of Statistics (NBS), showing a third consecutive quarter of positive growth of Nigeria’s economy and the highest quarterly growth in Nigeria’s Gross Domestic Product (GDP) since 2014.
Nigeria’s GDP grew by 5.01% (year-on-year) in the second quarter (Q2) of 2021, following 0.51% growth in Q1 2021, the NBS report stated on Thursday.
NBS said the growth which continues the progress of the preceding two quarters, is a continuing trend reflecting Nigeria’s economic rebound following the COVID-19-induced contractions seen in Q1 and Q2 in 2020.
In a statement issued by Buhari’s Special Adviser on Media and Publicity, Femi Adesina, the president commended managers of the economy for hard work and commitment, urging them to keep at it till the positive development “touches the lives and pockets of the average Nigerian.”
According to the NBS report, the main drivers of the Q2 2021 economic growth include Trade, Information and Communication (mainly Telecommunications), Transportation, Electricity, Agriculture (Crop Production) and Manufacturing.
It also noted that the non-oil sector is a significant contributor to the economic performance in Q2 2021 with growth of 6.74% in real terms; the fastest growth in the sector since the third quarter of 2014, adding that the contribution of the non-oil sector to GDP increased from 91.07% in Q2 2020 to 92.58% in Q2 2021.
NBS attributed the main growth drivers of the second quarter performance to the gains from easing restriction of movement locally and internationally, and the improvement in the business and economic environment compared to the same period in 2020.
The President, however, noted the decline in real growth in the oil sector in Q2 2021, compared to a year ago, as he stated that the lower production output as well as the volatility in oil prices since the beginning of the COVID-19 pandemic, is responsible for the decline in performance of the oil sector.
Buhari assured that recent reforms and efforts like the conclusion of the Marginal Fields Bid Round, the renewed focus on gas development (including the NLNG Train 7 project, and various pipeline construction projects) as well as the passage and assent to the Petroleum Industry Bill (PIB), are certain to attract new investment to the oil and gas sector, and create conditions for more robust levels of growth in the future.
“It is gratifying to note that the various policies of the administration, aimed at boosting agricultural production, improving the business environment, and investing massively in infrastructure, are beginning to yield fruit.
“Equally gratifying is the complementary news of the steady decline in the rate of inflation, over the last few months.
“The positive effects of the Economic Sustainability Plan (ESP), which helped fast-track the country’s exit from the COVID-induced recession of 2020, continue to be evident, as some of the sectors driving the Q2 2021 growth have benefited or are benefiting from government-led interventions.
“The successful roll-out of vaccines and COVID-19 protocols has also helped to reduce pressures on the healthcare system and the need for a lockdown.
“Looking to the future, the President assures Nigerians that there is much to be optimistic about,” Persecondnews quotes Garba as saying.
“He assures that the investments in agriculture and infrastructure will continue, as will on-going efforts to achieve a significant improvement in the security situation across the country.
“There is no doubt that a more secure environment – which the security agencies are working hard to achieve – will spur and energize the shoots of economic progress being seen and felt in the country,” the statement said.
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