TO reverse the downward trend recorded in the growth of gross domestic product (GDP) as seen in figures recently released by National Bureau of Statistics (NBS), the government needs to speed up the implementation of the 2018 budget.
Head of Department of Finance, Nassarawa State University, Keffi, Prof Uche Uwaleke said “the fall in Q2 GDP figure relative to the previous quarter can be attributed largely to the significant drop in the crude oil output from about two mbpd to 1.84mbpd.
“The increase in oil price over the same period was not sufficient to lift the sector.”
Uwaleke who is first Nigerian professor of Capital Market said the performance of the non-oil sector was not particularly impressive.
“Agriculture was particularly disappointing at just 1.19 per cent, one of the lowest growth rates in recent times” he observed adding “the reason for this is not far fetched.
“The seemingly intractable herders/farmers clashes is partly to blame.”
The chartered accountant also declared as disheartening, the fact that the education sector declined.
“Nevertheless, some cheering news came from a few other sectors that actually grew in nominal terms.
“These include Telecommunications, Transportation Construction and Health.”
According to him, “the lower Q2 GDP figure is no doubt a product of the delay in the 2018 budget process, exit of foreign investors corroborated by the capital importation report, uncertainties in the business environment, incessant farmers/herders clashes and reduced lending activities by financial institutions which manifested in the decline of the sector in Q2.”
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