PwC Nigeria’s Chief economist, Andrew Nevin has shared his opinion on the current Nigerian GDP report figures launched by the National Bureau of Statistics.
Speaking to TVC Business News anchor by way of Skype, the foremost economist stated that he stays optimistic in regards to the Nigerian financial system following the optimistic GDP report launched.
In his response to the newest GDP report, Nevin expressed optimism and known as on Nigerian residents to go straightforward on the federal government. He said that the COVID-19 pandemic has wrecked different economies and has introduced nations with very difficult occasions.
“Let’s put this in perspective, it is easy to be hard on ourselves and Nigeria, but around the world, this has been the greatest health and economic challenges in our lifetime.
“In the UK, the economy shrank in 2020 by almost 10%. The year 2019 to 2020 in Nigeria is about minus 1 percent. Then from the first quarter of 2019 to the first quarter of 2020, it increased a little bit. These are the few signs of positive happenings in the Nigerian economy. So, I am not surprised,” Nevin mentioned.
On the Information and Communication sector and likewise the Agriculture sector which had been key sectors chargeable for the optimistic GDP development, Nevin mentioned he was elated with the success of the ICT sector which he attributed to the truth that individuals had been working from properties. He additionally believed the Agriculture sector might be lots higher than it’s.
Nevin additionally highlighted the rising development away from Oil-dependency portrayed by the newest GDP report.
“I mean it’s very good news. There has been a lot of emphasis on ICT. It enables other sectors to do well. It is not a big surprise because people have been working remotely.
“In terms of Agriculture, we will like to see faster growth, but there has been so much emphasis on it paying dividends. When I talk to farmers or people in the agricultural space, they tell me the crops are doing very well. I mean it’s good news and it also shows us that the rotation away from oil is real,” he mentioned.
On the 19.76% plunge of the oil sector, the PWC chief economist highlighted the autumn in oil manufacturing within the fourth quarter of 2020. He brushed apart the heavy emphasis on Oil costs reminding the viewers that Oil manufacturing is equally necessary whereas analyzing the Oil sector.
“People always tend to think about the oil price but probably as important or more important in the context is the production. The production in the fourth quarter of 2020 was only 1.6m barrels a day. It is a big contraction there. So, the fact that we can grow the Nigerian economy in these very challenging health and economic times shows you the resilience of the Nigerian economy. It shows why people like me are optimistic in the medium term about the Nigerian economy,” he mentioned.
The Recent GDP report confirms that Nigeria has exited the pandemic-induced recession. Andrew Nevin was quizzed on how the Nigerian Government can maintain the optimistic development mirrored by the newest GDP report.
In response, he highlighted the encouraging partnership between the personal and the general public sector depicted within the current Lagos financial summit as one of many key methods to take care of optimistic development within the Nigerian financial system.