Oil exports controlled imports aided nigerias exit from recession nbs #

A great topic!

Yes, you're correct. Nigeria's exit from recession in 2017 was largely attributed to the increase in oil exports and controlled imports. Here's a breakdown of the factors that contributed to the country's economic recovery:

  1. Increase in oil exports: Nigeria's oil production and exports increased significantly in 2017, driven by the efforts of the Nigerian National Petroleum Corporation (NNPC) to boost production and the OPEC-led production cuts, which helped to stabilize global oil prices. The increase in oil exports led to a significant improvement in the country's foreign exchange earnings.
  2. Controlled imports: The Nigerian government implemented measures to control imports, including the introduction of a foreign exchange management system, which helped to reduce the country's import bill. This was achieved through a combination of policies, including:
    • Devaluation of the naira: The government devalued the naira to make imports more expensive, which helped to reduce the demand for foreign exchange.
    • Import restrictions: The government imposed restrictions on certain imports, such as rice and other food items, to reduce the pressure on the foreign exchange market.
    • Increased use of local content: The government encouraged the use of local content in production, which helped to reduce the need for imports.
  3. Improved agricultural production: Nigeria's agricultural sector also played a significant role in the country's economic recovery. The sector experienced a significant increase in production, driven by government initiatives such as the Agricultural Transformation Agenda (ATA) and the Anchor Borrowers' Programme (ABP). The increase in agricultural production helped to reduce the country's reliance on imports and improve food security.
  4. Reforms in the power sector: The government also implemented reforms in the power sector, which helped to improve electricity supply and reduce the cost of production. This, in turn, helped to boost economic activity and improve the country's overall economic outlook.

The combination of these factors helped Nigeria to exit recession in 2017, with the country's Gross Domestic Product (GDP) growing by 0.82% in the fourth quarter of that year. The country's economic recovery has continued since then, with the GDP growing by 2.01% in 2020.