Nigeria’s GDP growth, testament to economic resilience – Economist

Nigeria's GDP growth, testament to economic resilience – Economist

Nigeria’s Gross Domestic Product (GDP) in quarter two of 2021 (Q2, 2021) growth has been described as a testament to the nation’s economic resilience and capacity in the face of setbacks.

A Financial Consultant, Ona Ohimor while speaking with newsmen in Abuja stated that the 5.01 per cent GDP growth was a positive and welcome development, coming on the heels of the damaging effects of the COVID-19 pandemic and the attendant slump in oil demand and price.

The National Bureau of Statistics (NBS) last Thursday released its Q2, 2021 GDP report which indicated that GDP grew by 5.01 per cent (Year-on-Year) growth in real terms  marked by three consecutive quarters of growth since the recession in 2020.

It also said this indicated the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19 related restrictions.

The NBS also said that the steady recovery observed since the end of 2020, with the gradual return of commercial activity, local and international travel accounted for the significant increase in growth performance relative to Q2 2020 when nationwide restrictions first took effect.

Financial Consultant speaks

However, Ohimor said: “The GDP growth is a cause for cheer by all, as increased economic output rubs off by and large on the society.”

Ohimor cautioned that certain measures must, however, be put in place to ensure that the growth was sustained.

“The government needs to ensure that the growth is inclusive as much as possible, and by inclusive growth, I mean one that impacts all segments of society.

“The possibility of going back into recession is there if the growth is not sustained. The onus is on the nation’s economic managers to elicit programmes and policies that will sustain the growth and keep recession away.

“The security threat from banditry and farmers and herders clashes will continue to dampen output from the agricultural sector”, he said, stressing that until the government took decisive steps to stem the scourge and ensure maximum output from the sector, real GDP growth would continue to be muted.

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