Stock market grows n282bn economy recedes

It seems like you're referring to a recent development in the Nigerian economy. Here's a breakdown of what you've mentioned:

Stock Market Grows N282bn

The Nigerian Stock Exchange (NSE) has recorded a significant growth, with the market capitalization increasing by N282 billion (approximately $750 million USD). This growth is likely due to a combination of factors, including:

  1. Improved investor confidence: As the economy begins to recover from the COVID-19 pandemic, investors are becoming more optimistic about the future, leading to increased investment in the stock market.
  2. Strong performance by some stocks: Certain stocks, such as those in the banking and consumer goods sectors, have performed well, driving the overall market growth.
  3. Increased liquidity: The growth in market capitalization may also be attributed to increased liquidity in the market, as more investors participate in the stock market.

Economy Recedes

On the other hand, the Nigerian economy has experienced a recession. A recession is typically defined as a period of at least two consecutive quarters of negative economic growth. In Nigeria's case, the economy contracted by 2.6% in the second quarter of 2020, following a 1.9% contraction in the first quarter.

The recession is likely due to a combination of factors, including:

  1. Oil price shock: The sharp decline in oil prices in 2020, which is Nigeria's main source of foreign exchange, has had a significant impact on the economy.
  2. COVID-19 pandemic: The pandemic has disrupted global supply chains, leading to reduced demand for Nigerian exports and a decline in foreign investment.
  3. Monetary policy challenges: The Central Bank of Nigeria (CBN) has been grappling with high inflation, which has reduced the purchasing power of Nigerians and impacted economic activity.

In summary, while the stock market is growing, the Nigerian economy is experiencing a recession. This dichotomy highlights the complexities of the economy and the need for policymakers to address the underlying challenges to achieve sustainable growth.