From Juliana Taiwo-Obalonye, Abuja
Nigeria’s exit from recession is a key indicator that the economy is poised for stable and consistent growth, the Federal Government said, yesterday.
The government also said exiting recession was an indication that its diversification effort was yielding results.
Finance Minister, Zainab Ahmed, while briefing journalists alongside ministers of Information and Culture, Lai Mohamed and FCT, Mohammed Bello, at the end of the Federal executive Council presided over by President Muhammadu Buhari, said the government had been implementing vigorously, the Economic Sustainability Plan (ESP) approved by council last June with Vice President Yemi Osinbajo leading the implementation of the plan.
Ahmed said: “We had the opportunity to brief Council on the National Bureau of Statistics recently published fourth quarter GDP report estimates, which measure the economic growth of our country.Nigeria’s GDP in the fourth quarter of 2020 grew by 0.11 per cent and in real terms in the fourth quarter of 2020. This follows, if you recall, two consecutive negative growth in the third quarter and second quarter of 2020, which saw us as a country going into recession. So as a result of this fourth quarter positive growth, the total growth for the year 2020 is -1.92 per c net.
“Recall that we had ourselves reported, that we will be going into a negative growth at the end of 2020 at -four per cent and some of the international development institutions reported much higher negative growth for Nigeria. So at -1.92 per cent, it is a very good performance.
“But also, the good story for us is that, with this positive growth in the fourth quarter, it means Nigeria has exited recession. This is one of the shortest lived recessions we have witnessed in the country, despite the impact of the COVID-19, but I must say that the result of this exit is as a result of the fiscal policies, the monetary policies and the Economic Sustainability Plan that the administration of President Muhammadu Buhari has been implementing. “
Council also approved N5.9 billion for three projects under the Ministry of the Federal Capital Territory (FCT). Minister of the Federal Capital Territory (FCT), Mohammed Bello, said the three memos were on the provision of infrastructure in the city as well as the purchase of needed equipment to make the city safe
FCT Minister said that the third contact approved for his ministry was that of the purchase of two towing vehicles and a crane for use by the Directorate of Road Traffic Services at the sum of N3.072 million.
“The third is for the purchase of two heavy duty tow vehicles with mounted crane for the Directorate of Road Traffic Services otherwise called Vehicle Inspection Officers (VIO), under the FCT and that particular contract was approved at a total sum of N3,072,466,000 with a duration period for the supply put at six weeks,” he said.
“So out of the 46 sectors of the economy, 17 recorded positive growth and this is higher than the number of sectors that had recorded positive growth in the third quarter. In real terms, the growth between the third quarter and the fourth quarter is a positive growth of 3.73 per cent, a movement within one quarter we have never witnessed in this country, so we’re growing from one quarter to another by 3.73 per cent.
“That also the movement from the second quarter to the third quarter also witnessed a growth of 2.48 per cent is an indication that the policies that are being implemented are the right ones and the trajectory is a positive one and that Nigeria is well on its way of restoring a consistent and stable growth, a growth that we hope to grow to be a strong growth from the fragile growth that we now have at 0.11 per cent.
“So this is a good performance, but on a broad sectoral basis, the agricultural sector posted a strong growth of 3.42 per cent during the last quarter and when you compare to the previous quarter, it’s a much better performance.”
“Similarly, Services Sector grew. Other sectors that witnessed slow down in growth include Industry, crude, petroleum and natural gas sectors. The decline in oil production and prices in 2020, of course reflective of global drop in demand, and it is one of the major reasons why our country went into recession.
“Another positive story for us is that the non-oil sector grew by 1.69 per cent. This is an indication that the diversification efforts that the economy has been pushing is actually also posting results; while the oil sector is declining, the non-oil sector is is growing.
“We’ve seen overall economic activities reported strongly in the quarry and minerals sector, in the ICT and Telecommunications sector, in the cement industry, in broadcasting, in crop production as well as in agriculture. On the other hand, there are some sectors that are still witnessing negative and that’s why I said the growth is still fragile. These sectors include oil refining, air transport, coal mining, crude petroleum production, as well as accommodation and food services.
“Just of note is that we had vigorously implemented the Economic Sustainability Plan and we continue to implement the ESP. Even as we are taking the principles and the tenets of the ESC into the new National Development Plan that will be completed, we hope in the Medium Term Plan that we hope will be completed and launched in the month of April.”
Council also approved N5.9 billion for three projects under the Ministry of the Federal Capital Territory (FCT). Minister of the Federal Capital Territory (FCT), Mohammed Bello, said the three memos were on the provision of infrastructure in the city as well as the purchase of needed equipment to make the city safe
FCT Minister said that the third contact approved for his ministry was that of the purchase of two towing vehicles and a crane for use by the Directorate of Road Traffic Services at the sum of N3.072 million.
“The third is for the purchase of two heavy duty tow vehicles with mounted crane for the Directorate of Road Traffic Services otherwise called Vehicle Inspection Officers (VIO), under the FCT and that particular contract was approved at a total sum of N3,072,466,000 with a duration period for the supply put at six weeks,” he said.
Minister of Health, Dr. Osagie Ehanire, on his part said council approved the two memos, both of in Favour of the National Agency for Food and Drug Administration and Control (NAFDAC).