Presidency on GDP figures: Nigeria doing better than UK, US economies

The presidency says the second-quarter gross domestic product figures released by the National Bureau of Statistics on Monday was better than projected figures.

A statement released on Wednesday by Femi Adesina, special adviser to the president on media and publicity, quoted the presidency as saying the figures also showed that the economy is faring better than many that of other countries.

“The overall decline of -6.1 percent (for Q2 2020) and -2.18 percent (for H1 2020) was better than the projected forecast of -7.24 percent as estimated by the National Bureau of Statistics. The figure was also relatively far better than many other countries recorded during the same quarter,” the statement read.

“Despite the observed contraction in economic activity during the quarter, it outperformed projections by most domestic and international analysts.

“It also appears muted compared to the outcomes in several other countries, including large economies such as the US (-33 percent), UK (-20 percent), France (-14 percent), Germany (-10 percent), Italy (-12.4 percent), Canada (-12.0 percent), Israel (-29 percent), Japan (-8 percent), South Africa (projection -20 percent to -50 percent), with the notable exception of only China (+3 percent).”

Adesina said the government had anticipated the impending economic slowdown and introduced various initiatives including the economic sustainability programme as early response to cushion the effects of the pandemic.

It listed fiscal measures taken to include a robust financing mechanism designed to raise revenue to support humanitarian assistance, in addition to special intervention funds for the health sector.

“Adjustments to the national budget as well as emergency financing from concessional lending windows of development finance institutions were critical in supporting governments’ capacity to meet its obligations.

“On the monetary side, a moratorium on loans, credit support to households and industries, regulatory forbearance and targeted lending and guarantee programs through NIRSAL were some of the measures implemented in response to the pandemic during the second quarter.”

Adesina said the phased easing of restriction has resulted in a gradual return of economic activity and the government’s ability to manage the pandemic without overwhelming health facilities has given it the confidence to re-open the country to travel, commerce and international trade.

“Indeed, this has provided greater confidence and ability for authorities to initiate the conduct of nationwide terminal examinations and resumption of the next academic year,” he said.

“Finally, it is anticipated that while the third and fourth quarters will reflect continued effects of the slowdown, the fiscal and monetary policy initiatives being deployed by the government in a phased process will be a robust response to the challenges posed by the COVID-19 pandemic.”

The media aide advised that citizens adhere to all the necessary public health instructions to avoid a second wave of the coronavirus.