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Nigeria may be headed for another recession as economy slows in Q2 2018

Published

5 years ago

August 27, 2018

The Nigerian economy has slowed for the second consecutive quarter this year, raising fears the nation may soon be heading for another economic recession.

According to the Gross Domestic Product (GDP) figures released by the National Bureau of Statistics (NBS) on Monday, the rate at which the nation’s economy grew in the second quarter of 2018 slowed to 1.50 percent from 1.95 percent recorded in previous quarter.

The GDP growth rate is the rate at which the value of all goods and services produced within a country’s border in a given period is rising.

Nigerian economy had officially slumped into recession in the second quarter of 2016 after recording negative GDP for two consecutive quarters, according to NBS.

Nigeria, which relies on crude oil for 70 percent for its revenue and over 90 percent for its export earnings, slumped into its worst economic woes since 1987 by recording five consecutive negative GDP growth rates from -0.67 percent in Q1 2016 to -0.91 percent in Q1 2017.

The nation’s annual growth rate turned positive in Q2 2017 with GDP growth rate of 0.72 percent and sustained the positive trajectory for five quarters till Q2 2018.

The economy would enter another recession when the GDP figures turn negative for two consecutive quarters.

The data indicated that the oil GDP contracted by -3.95 percent from 14.77 percent in Q1 2018, while non-oil GDP grew by 2.05 percent from 0.76 percent in Q1 2018.

Last week, the Statistician-General of NBS, Yemi Kale, had attributed the downturn to the clashes between farmers and herdsmen in some parts of the country.

The International Monetary Fund (IMF) had projected that the nation’s economy would grow from 0.8 percent in 2017 to 2.1 percent in 2018 and 2.3 percent in 2019 on the back of an improved outlook for oil prices.

According to the global monetary authority, the forecast “reflects improved prospects for Nigeria’s economy” and supported by the increase in commodity prices like crude oil.

With the GDP figures for the two quarters, the nation now has an average GDP of 1.73 percent for the first half of 2018.

Related Topics:GDP Gross domestic product National Bureau of Statistics NBS Nigeria Q2 2018

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Congo DR: President Tshisekedi visits China for mining renegotiations

Published

2 days ago

May 27, 2023

Ifeoluwa Dada

The President of the Democratic Republic of Congo, Félix Tshisekedi is currently on a visit to China to strengthen his country’s partnership with the Asian giant.

An official of Congo DR, Erik Nyindu Kibambe, while addressing journalists in Beijing, revealed that the trip was meant to be for the renegotiation of mining contracts. Kibambe maintained that talks were going “wonderfully.”

The president had previously promised to renegotiate mining contracts, in particular, the one signed in 2008 with China by his predecessor, Joseph Kabila (2001-2019), for better terms in favour of the country.

The president was received by a cheering audience and a line of honour and jubilant children between meetings with Mr Xi and Premier Li Qiang.

Mr. Li told Mr Tshisekedi that he believed “China-DRC relations will surely achieve greater development and benefit both peoples.”

A statement by the Chinese foreign ministry revealed that the countries were upgrading “the bilateral relationship from a win-win strategic cooperative partnership to a comprehensive strategic cooperative partnership.”

Congo is one of the most natural resource-rich nations, holding massive untapped deposits of minerals including cobalt, copper, diamonds and gold amounting to approximately $24 trillion.

China is a major investor in the country where it leads the lucrative mining sector with firms like Sicomines.

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Kenya, IMF agree terms for $3 billion Extended Credit Facility

Published

5 days ago

May 24, 2023

Ifeoluwa Dada

Kenya has reached an agreement that could unlock more than $3 billion of new financing with the International Monetary Fund (IMF).

The international lender and the country said the agreement could help relieve pressure on government finances in East Africa’s largest economy.

The agreement is the fifth review of Kenya’s External Credit Facility and Extended Fund Facility arrangements, an extension of the program and augmentation for access under a 20-month Resilience and Sustainability Facility.

Under the agreement, Kenya will get access to $544 million through the Resilience and Sustainability Facility, which is intended to support climate change adaptation and resilience. A total of $3.5 billion had been committed to funding for Kenya under the three facilities, and its executive board would likely consider the staff-level agreement in July.

The IMF stated that the medium-term outlook for the Kenyan economy remained favourable, although the economy had been strained by a challenging external environment. The IMF maintained that the planned fiscal consolidation was appropriate, while also protecting priority social spending.

“Exchange rate flexibility and proactive monetary policy will remain critical to preserving macroeconomic stability and supporting market confidence against the backdrop of a challenging global economic outlook and continued uncertainty in international financial markets,” IMF said in a statement.

Kenya has insisted that it would not default on its debt repayment obligations despite delayed payment of civil service salaries.

The country in April revealed plans to issue a new Eurobond to manage 2024’s maturity of a Ksh270 billion ($2 billion) 10-year bond.