BUSI­NESS Re­ces­sion likely ended in June, NBS boss, bankers say

De­mand for oil to rise in 2018, says OPEC

Daily Trust - - NEWS - By Hamisu Muham­mad

There is like­li­hood that the eco­nomic re­ces­sion in the coun­try ended in the sec­ond quar­ter of the year fol­low­ing some im­prove­ments in some sec­tors of the econ­omy, the Statis­ti­cianGen­eral and the Bankers Com­mit­tee noted yes­ter­day.

Yemi Kale, chief ex­ec­u­tive of­fi­cer of the Na­tional Bu­reau of Sta­tis­tics told Bloomberg, “In­tu­itively, we might be get­ting out of re­ces­sion in the sec­ond quar­ter, but I can’t say un­til all the num­bers are in.”

Kale, said in an in­ter­view in his of­fice in Abuja that, “If it doesn’t hap­pen in the sec­ond quar­ter, it will be a much more re­duced neg­a­tive, and it will def­i­nitely hap­pen in the third quar­ter un­less we have a new round of shocks in the later weeks.”

Also at the end of the meet­ing yes­ter­day, the Bankers Com­mit­tee of the Cen­tral Bank of Nige­ria and other fi­nan­cial in­sti­tu­tions said the econ­omy may have emerged out of re­ces­sion as far back as the sec­ond quar­ter of 2017.

Speak­ing af­ter the meet­ing, the Direc­tor, Bank­ing Su­per­vi­sion of the CBN, Mr. Ahmed Ab­dul­lahi, said “the bankers com­mit­tee noted the turn­around in the econ­omy re­gard­ing the progress that has been made in get­ting the econ­omy out of re­ces­sion. We have strong be­lief that the sec­ond quar­ter of the year may have seen the econ­omy emerg­ing out of re­ces­sion.”

He said there are rea­sons to be­lieve that as the non-oil sec­tors wit­nessed growth al­though the num­bers are not yet out from the Na­tional Bu­reau of Sta­tis­tics but the fact that ma­jor non-oil sec­tors have wit­nessed pos­i­tive growth and the growth is driven largely by the oil sec­tor, then there is this be­lief that a num­ber of an­a­lysts be­lieve that the econ­omy could have been out of re­ces­sion by the sec­ond quar­ter of 2017.”

Ab­dul­lahi said: “This is a wel­come de­vel­op­ment be­cause it is go­ing to have a rob-on ef­fect on the bank­ing sec­tor and other sec­tors of the econ­omy gen­er­ally and the bankers com­mit­tee gen­er­ally ex­pressed its de­light with this de­vel­op­ment in the econ­omy.

“We await the num­bers from the NBS but there is this strong be­lief and a num­ber of other rea­sons as well. If you look at the con­fi­dence in the econ­omy, if you look at the up­surge in the cap­i­tal mar­ket, sta­bil­ity of the forex mar­ket, you will know that a lot of ef­forts have been made in get­ting the econ­omy out of re­ces­sion.”

On his part, Man­ag­ing Direc­tor of Union Bank, Mr Emeka Emuwa, said that the board of the Agric and SMEs Fund had been in­au­gu­rated. The fund has N26 bil­lion in it kitty and the amount is ex­pected to grow. FLIGHT


Statis­ti­cian-Gen­eral, Yemi Kale

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