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Read How Nigeria's Economy Is Collapsing Under Buhari

Read How Nigeria's Economy Is Collapsing Under Buhari Read How Nigeria's Economy Is Collapsing Under Buhari

– These are not the best of times for the Nigerian economy

– Africa’s largest economy shrank to 2.2% in the third quarter

– This is according to the National Bureau of Statistics (NBS)

The Nigerian economy shrank to 2.2% for the third quarter of the year according to a report published by the National Bureau of Statistics on its website yesterday, November 21. Nigerian economic managers under President Muhammadu Buhari have not provided enough shocks to stave off an economy on a free fall since the beginning of the year.

The Nigerian economy has witnessed a decline in every quarter so far this year with an inflation rate that’s at the highest in more than a decade.

President Buhari and his advisers have since embarked on blame game, accusing the last administration of plunging Nigeria into its present situation. Reacting to yesterday’s report by the NBS, the presidency stated that the Buhari administration is consistent in its resolve to finding economic stability in the country. “The slight deterioration in national economic performance owes largely to the continued poor performance of the oil and gas sector which worsened to -22.01% in the third quarter as compared to -17.48% in the second quarter of 2016. “The immediate cause of this, as is now generally recognized, is the steep decline in oil and gas production in the third quarter of 2016 due to acts of vandalism and sabotage of oil export facilities,” the government said in a statement distributed to journalists. The four charts below show how Nigeria’s economy is collapsing under the present administration:

1. Inflation According to the NBS report, inflation accelerated to 18.3 percent, the highest rate in 11 years. It is no longer news that the prices of consumer goods are growing at almost 20 percent especially in urban areas. This is not helped by the fact that Nigerians largely depends on imported goods and the scarcity of dollars has made matters worse. NAIJ weekly price check is a good place to keep tabs on prices of consumer goods.

2. GDP on downward slope The NBS report showed that the Gross Domestic Product (GDP) in Quarter 3 of 2016 contracted by 2.24%, relative to 2.06% in Quarter 2 and 0.36% in Quarter 1. According to the International Monetary Fund, the figures indicates that the Nigerian economy is on track to shrink 1.7 per cent at the end of the year, which would be the first full-year contraction in more than two decades.

3. Slow FDI The economic recession and the policy flip flop of the Buhari administration has chased away potential foreign investors into Nigeria causing the country’s Foreign Direct Investment to be very low. In July, the Central Bank of Nigeria governor, Godwin Emefiele said investors had been lukewarm about bringing new capital into the country even after he raised the benchmark rate to 14 percent, just over a month after the naira was devalued.

4. The continuous decline of the naira  The naira has lost almost 40 per cent of its value against the dollar since its devaluation in June, but it has not stopped potential investors from staying away from Nigeria, with some claiming that the Central Bank of Nigeria is still manipulating the naira. To make matters worse, many businesses have been unable to get the foreign exchange they need from their banks to pay for imported raw materials and equipment. You can check http://bdc.naij.com/ for buying and selling of forex.

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Read How Nigeria's Economy Is Collapsing Under Buhari
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