Nigeria finally out of worst recession in 28 years - What next?

The good news making the round in Nigeria on Tuesday says, Africa’s largest economy, has finally come out of recession as announced by the National Bureau of Statistics.

According to the NBS, which declared Nigeria’s worst recession in 29 years, the nation’s Gross Domestic Product (GDP) grew by 0.55% (year-on-year) in real terms, in the second quarter of 2017, indicating the emergence of the economy from recession after five consecutive quarters of contraction since Q1 2016.

This growth is 2.04% higher than the rate recorded in the corresponding quarter of 2016 ( –1.49%) and higher by 1.46% points from rate recorded in the preceding quarter, (revised to –0.91% from –0.52%). Quarter on quarter, real GDP growth was 3.23%,” the NBS said.

The oil sector was estimated to have averaged at 1.84 million barrels per day, which is 0.15 million barrels higher than the daily average production recorded in the first quarter of June.

The non-oil sector, which was driven by agriculture, finance and insurance, electricity, gas, steam and airconditioning supply and other services grew by 0.45% in real terms.

This is 0.83% higher than the rate recorded in second quarter 2016 and -0.28% lower than the rate recorded in first quarter of 2017.

During the quarter, aggregate GDP stood at N26,986,005.20million in nominal terms, compared to N23,547,466.91 million in Q2 2016, resulting in a Nominal GDP growth of 14.60%, the report added.

Reacting to the report, the Presidency said it welcomes the news with “cautious optimism and will continue to drive the economic growth of the country by vigorously implementing the Economic Recovery & Growth Plan launched earlier this year by President Muhammadu Buhari.

The Nigerian economy slipped into recession in early 2016.

An economy is said to be in recession after contracting for two consecutive quarters.

After this what next?