By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s economy is expected to grow by 3.78 percent in 2016 from 2.97 percent recorded in 2015, an increase of less than 100 basis points, according to a latest report from the National Bureau of Statistics (NBS).
“Beyond 2016 however, growth is expected to jumpstart averaging 5.41 percent yearly between 2017 and 2019 as infrastructure developments take shape and provide support for both the oil and non-oil sectors.
NBS says while upward pressure on inflation is expected, meaning that the Headline index may rise from 9.55 percent to 10.16 percent in 2016, rates are expected to moderate beyond this period and average 9.01 percent between 2017 and 2019.
“The value of total trade is expected to slow in 2016, increasing by 2.41 percent as a result of moderations in imports and exports. Beyond 2016, both import and exports are expected to increase and Total Merchandise trade is expected to Average 15.61 percent growth during the period,” the NBS report affirmed.
“Interestingly, economists love these times, and thus the phrase; “never let a crisis go to waste”. Few instances give governments the opportunity to take hard decisions. Accordingly, the government is using the 2016 budget as an opportunity to reset and redirect the macroeconomic dynamics of the country.
The attempt to consolidate expenditure using the Treasury Single Account to plug leakages (even if this is only at the federal level) is a welcome first step.
The proposed 1.6 trillion to be invested in capital projects, and other initiatives in particular in Power, Works and Housing are likely to bode well for the economy. In addition, the establishment of the Efficiency Unit to identify and surgically eliminate inefficiencies without hampering productivity is also another development,” the report’s executive summary affirmed.
Click here to down load report-” The Nigerian Economy: Past, Present and Future-NBS
