With the year winding up, Nigeria has experienced three consecutive quarters of negative growth as shown by three different indicators; Gross Domestic Product, GDP, Inflation and Employment.
Nigerians who voted in the current administration were expectant that within the second, third and fourth quarters of 2015 Nigeria’s the economy must have gotten a sense of direction. That has remained a pipe dream thus far.
Nigerians have undergone two successful quarters under President Muhammadu Buhari and yet the change mantra is yet to materialize as the economy has experienced its worst season of negative growth in the history of the country’s democracy.
Although the President recently claimed responsibility for the measures put in place which were injurious to the growth of small businesses in Nigeria, the economy has been riddled with numerous economic woes which his party and sole administrator-ship is yet to address.
According to the National Bureau of Statistics NBS, in the first quarter the nation’s GDP Q1 growth rate further declined to 3.86% compared to 5.94% the previous quarter.
Managing Director, Financial Derivatives Company, Bismarck Rewane and NBS confirmed that inflation figure was pegged at 7.9%.
The number of unemployed persons in the country rose to 861,110 Nigerians out of work in the first quarter of the year.
In the second quarter the continued decline of crude oil at the international market dragged down GDP growth rate indices to 2.35% on an annual basis, compared with 3.86% a quarter earlier.
Inflation in Q2 was the worst so far according to reports as it rose from 7.9% in Q1 to 9.3%. Food inflation rose marginally to 10.1% year-on-year in August versus 10% in July.
- “The marginal increase was as a result of slower increases in alcoholic beverages, tobacco and kola, health, transport and recreation and culture divisions,” the NBS said.
Unemployment in Q2 under Buhari grew from 7.5% in Q1 to 8.2% representing 1.3 million unemployed Nigerians.
The economically active population or working age, comprising persons within the age range of 15 to 64, according to NBS increased to 103.5 million in the second quarter Q2, up from 102.8 million in the first quarter.
In the same quarter, CBN said Nigeria was heading into recession in 2016 with the Trade Union Congress, TUC, countering to say the nation was already in recession.
According to the Nigerian Stock Exchange, NSE, Investors in the Nigerian stock market lost N1.6 trillion in Buhari’s first 100 days in office.
In the third quarter, the GDP growth rate has deepened further as inflation rate rose to 9.4% from 9.3% in the previous quarter. NBS has ascribed this as the highest value since February 2013.
Analysts are of the view that unemployment in the third quarter has reached a boiling point. This has been worsened by the President’s recent statement that Nigeria is broke. This implies a reluctance to engage active Nigerians.
At this rate pandemonium might soon spring up in different geopolitical zones in the country, if something drastic is not done to cushion its effect. The economic team on the verge of being instituted needs to get to work immediately if there is to be any hope held by the common man.