Non-oil sector to steer economic reboundFrom OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – A global economic think-tank has projected Nigeria to defy prevailing challenges and record growth thanks to positive gains in the non-oil sector.
The forecast by Rand Merchant Bank (RMB) Global Markets comes on the back of Nigeria’s economic growth slowing to 2,35 percent in the second quarter of 2015 (2Q15) from 6,54 percent in the same period last year on the back of lower oil prices.
“It is only natural as the oil sector accounts for 90 percent of Nigeria’s foreign exchange earnings and 70 percent of government revenues. This dependence has caused significant weakness in the local currency, and the effect on the economy has caused an outflow of investor funds,” RMB pointed out.
The firm highlighted that the oil sector contracted by 6,5 percent as production stood at 2,05 million barrels per day, lower than the corresponding quarter in 2014 of 2,21 million bpd.
Amid the setbacks, RMB projected the non-oil sector remained the primary impetus for growth.
Largely driven by trade, crop production, construction and telecommunications — the sector grew by 3,46 percent in 2Q15.
“On average, we expect overall growth to reach 4,3 percent in 2015,” RMB projected.
– CAJ News
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