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How Nigeria came out of recession, by Emefiele - THE NATION

MAY 18, 2019

by Chris Oji, Enugu

Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele on Friday disclosed that after five consecutive quarters of negative growth beginning in the first quarter of 2016, a coordinated approach by the fiscal and monetary authorities supported a rebound in the nation’s economy during the second quarter of 2017.

He disclosed this while delivering a special convocation lecture of the University of Nigeria (UNN) at the Princess Alexendra Hall, Nsukka.

The CBN governor, who was also conferred with honorary doctorate degree of the institution, said the recovery has been driven largely by improved non- oil activities especially the agriculture sector, which he said expanded consistently by about 3.5 -4.3 percent reflecting government’s efforts at diversifying the economy.

“After 5 consecutive quarters of negative growth beginning in the 1st quarter of 2016, a coordinated approach by the fiscal and monetary authorities supported a rebound in the nation’s economy during the second quarter of 2017.

“This was nonetheless, reinforced by the pickup in the oil sector as oil prices rallied in 2017. The gradual reorientation of the economic structure towards the agriculture sector reflects the diversification drive of the government which was supported by the development finance initiatives of the CBN.

“The recovery has been sustained for seven consecutive quarters. The pace of quarterly GDP growth has improved from .5 percent in the second quarter of 2017 to 2.38 percent in the fourth quarter of 2018,” he stressed.

Emefiele however noted that challenges still remain such as ensuring that the pace of GDP growth remains well ahead of annual population growth at 3 percent.

He said that this can only be achieved if Nigerians continue to support efforts aimed at improving domestic production of goods in Nigeria.

He added proactive fiscal actions, especially, infrastructure investment were required to enhance economic growth.

The CBN governor further stated that universities have a considerable role to play in working with the private and public sector in supporting research and development of solutions that can be applied to enhance the growth of the economy.


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