Experts Outline Ways For More Robust Growth

He said, “The growth in GDP is cheering news because for five consecutive quarters, Nigeria’s GDP has been at negative tertiary. Now that we are technically out of recession, it will boost confidence in the nation’s economy.

“A number of foreign investors are interested in what is happening in the country and a further decline in GDP will damage their moral of investing the Nigeria’s economy.

“Federal government needs to work on diversification of the economy so that we don’t over depend on Oil and Gas sector. The government must sustain its policies in agriculture sector and CBN’s must sustain its foreign exchange intervention”.

A renowned economic expert, Ayo Teriba, while speaking with our correspondent on the NBS report yesterday said, “This recovery is the result of improvement in oil price and oil production. If any of the two falls, we will be back to square zero. The recovery is dependent on the oil price staying where it is, and the oil production also staying where it is or even getting better. So, it rests squarely on sustenance of oil sector activities.

“If you wanted to be sure of the recovery that is sustainable regardless of what happens to oil, then, Nigeria has to do a bit of what Saudi Arabia is doing. They are in the same situation with Nigeria. And they know that oil is very reliable for growth and stability. In May, they announced the privatization of about 16 of their sectors, which they believe will give them 200 billion U.S Dollars.

“For you to be sure that the recovery will be sustained and your growth will be steady, Nigeria also needs to open up to foreign investment and build up foreign exchange buffers. Then, the economy will not be dependent on whether the oil price is low or high or whether the oil production is low or not”.

Also, in his contribution, Mr. Adedayo Ojo, an energy analyst and acting managing director and CEO of Proxima Energy said the stability in the exchange rate occasioned by government earnings from improved oil production boosted investors’ confidence.

Ojo also noted that restoration of major and key oil installations in the Niger Delta helped to boost oil production and in turn lifted overall government earnings, even as he said the bringing back to full functionality of the Forcados export facility boosted export potential in the sector.

The director-general of Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf said, “This is a good development for the country. It has a positive signaling effect and it will also have a positive effect on the perception of the economy especially by foreign investors as this will boost the country’s image.”