Mohammed Shosanya
A report by the Centre for the Promotion of Private Enterprise,says Nigeria’s oil refining,crude petroleum and gas sector fell into recession in the first half of the year.
The oil refining dipped by 35.6%;while crude petroleum and gas, dropped by13.4%; according to the report signed by the Enterprise’s Chief Executive Officer,Dr.Muda Yussuf
Livestock sector contracted by 2.3%; and Textile,4.4%,the report added.
According to the report,growth in these sectors continued to be subdued by heightened inflationary pressures, exchange rate volatility, spiking energy cost, insecurity and the political economy of the oil and gas sector.
On the sectors that grew in the first quarter,the report said the sectors include Quarry and Minerals which grew by a staggering 39.2%; financial institutions 29.2%; Rail Transport, 16.9%; Insurance, 7.3%; Trade, 2.4%; Construction, 3.5%; Manufacturing , 2.2%; Education, 1.4%; Real Estate, 1.9%; Chemical and Pharmaceutical, 6.4%; Food and Beverage Sector, 4.3%; Cement 3.3%; Plastics, 2.7%; Iron and Steel, 2.3%; Agriculture, 1.5%; Fishing, 0.29%.
On the sectors that slowed down during the period,the report said they include ICT, 9.7%; Air Transport, 4.3%; Crop Production, 1.8%; Wood and Wood products, 2.4%; Paper and Publishing, 1.4%; Water Transport, 5.4%;
Some sectors contracted during the period are those that recorded negative growth in the second quarter.
The report added that,the output in the sectors contracted because of the prevailing economic and investment climate conditions.
Road transport sector recorded the biggest contraction of 55% in the second quarter.
Other sectors that contracted include Coal Mining which contracted by 15.7%; Motor vehicle Assembly, 3.9%; Music and Motion Pictures, 2%.
Commenting on the report,Muda Yussuf remarked that The Nigerian economy is still going through corrective reforms to remove some fundamental distortions and restore the economy back to the path of recovery and growth.
He added:” But implementing the reforms is an arduous task. The trade offs are profound and the social impact has been devastating. Given the inevitability of the reforms, the implementation calls for a delicate balancing act and strategic sequencing to ensure an inclusive economic transition.Dealing with the issues of insecurity, spending priorities, corruption, productivity and competitiveness, regulatory environment and macroeconomic stability are paramount to rebuilding the momentum of economic growth and development”.
