Nigeria’s economy bleak in first half-NACCIMA

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) yesterday said the nation’s economy in the first half of the year(January -June 2016) was bleak and harsh.

President of the association, Dr. Bassey Edem, who gave the assessment at a press briefing on the state of the economy and the association’s perspective on some trending socioeconomic issues, also said the rate of inflation almost doubled since the beginning of the year, from 9.55 percent to 16.45 percent which is the highest point since 2015.

He added that electricity generation reduced by almost 50 percent.

Edem said during the period the price of petroleum products also doubled, while foreign exchange earnings have continued to drop significantly due to reduction in output caused primarily by the vandalisation of infrastructure and low crude oil prices in the global market.

He said: “Although, we acknowledge the effort of the federal government in addressing these issues, these efforts have not translated into measurable positive indicators; rather it has led into recession which has become a thing of worry to private sector operators.

“The real sector is reeling under the burden of rising costs of production in a state of near economic stagnation while facing the prospects of being the base by which the government hopes to obtain tax revenue to finance the economy.