Government says non oil sector out of recession

A significant economic development in Nigeria!

According to recent reports, the Nigerian government has announced that the non-oil sector of the economy has officially exited recession. This is a significant milestone, as the non-oil sector is a critical driver of economic growth and development in the country.

Here are some key points to note:

  1. Non-oil sector growth: The non-oil sector, which accounts for about 90% of Nigeria's GDP, has recorded a growth rate of 2.48% in the second quarter of 2021, according to the National Bureau of Statistics (NBS).
  2. Recession exit: This growth rate is sufficient to exit the recession that the non-oil sector had been experiencing since the fourth quarter of 2020.
  3. Sectoral performance: The NBS report shows that the non-oil sector's growth was driven by strong performances in the manufacturing, construction, and services sectors.
  4. Oil sector still struggling: While the non-oil sector has exited recession, the oil sector is still struggling due to the impact of the COVID-19 pandemic and global economic challenges.
  5. Government's response: The government has attributed the non-oil sector's growth to its economic stimulus packages, including the Central Bank of Nigeria's (CBN) monetary policy interventions and the Federal Government's fiscal policies.

This development is significant for several reasons:

  1. Economic diversification: The growth of the non-oil sector is a step towards diversifying Nigeria's economy, reducing its reliance on oil exports, and promoting sustainable economic growth.
  2. Job creation: The non-oil sector is a significant employer of labor, and its growth is expected to create more jobs and stimulate economic activity.
  3. Investment opportunities: The growth of the non-oil sector presents opportunities for investment in various sectors, including manufacturing, construction, and services.

Overall, the exit of the non-oil sector from recession is a positive development for Nigeria's economy, and it is expected to have a positive impact on the country's economic growth and development prospects.