Economists and financial analysts have warned that the nation will slip back into another recession if the price of crude oil suffers an intense decline.
A Nigerian economist based in New York, United States of America, Ms. Bunmi Adeyemi, who warned that the rebound should be received with cautious optimism, explained that the 0.55 per cent growth in the Gross Domestic Product in the second quarter was slower than expected.
According to her, the development, which is largely as a result of rising oil price, is delicate. She said the nation could slip back into recession if more productive efforts are not made to attract more investors in the non-oil sector, to cushion the effect of another slide of crude oil price in the nearest future.
“Until the non-oil sector is properly developed and economy built but not around the price of crude, Nigerians cannot heave a sigh of relief from the lull. To impact the lives of ordinary Nigerians, there must be reduction in the multiple exchange rates; alignment of procurement policy at all levels of government to support domestic investment; investment policy that would protect domestic investors, and investment-friendly tax and interest rate policies,” she said.
Director-General, Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf, explained that the GDP numbers and the exit from recession were not end in themselves but means to an end.
He said, “What ultimately matters to business is the impact on the cost of doing business, productivity of the economic players, competitiveness of firms and the sustainability of investment.
“On the level of the individual citizens, what matters is the welfare effect of the GDP numbers, the impact on food prices, cost of health care, transportation cost, power supply and the purchasing power. These are some of the ultimate outcomes that will determine whether or not the exit from recession will be
celebrated.”
The LCCI boss suggested that in order to sustain the momentum of recovery and the current positive outlook, government should continue with sound policies by involving stakeholders in their formulation, adding that policies should be consistent and allowed ample time before being terminated.
