March could mark end to Nigeria’s economic slump

The curtain appears to be drawing on the most painful economic crisis in Africa’s most populous nation, as green shoots of recovery sprout across several pockets of an economy the International Monetary Fund (IMF) has tipped to grow one percent in 2017. Declining inflation, rising external reserves on the back of higher oil volumes could signify the commencement of a drop in the rising cost of goods and services in the country. 

Economic experts have said that the drop in inflation figure from 18.72 in January to 17.78 per cent in February was a signal that the country’s economy would overcome recession soon. The experts said this on Wednesday in Abuja that the 0.94 per cent inflation decline was an indication that recession could end before the end of the first quarter of 2017 and begin a recovery by the second quarter of the year. 

The National Bureau of Statistics (NBS) February Consumer Price Index (CPI) indicated that inflation rate dropped to 17.78 per cent for the first time in 15 months. The current inflation figure would ultimately have a positive effect on the purchasing ability of Nigerians and is capable of growing the country’s Gross Domestic Product.

The current decline in inflation figure would impact positively on lending rate by deposit money banks and cause interest rates on loans and advances to reduce. It would also stimulate the confidence of foreign investors to consolidate their investments in the country. The drop in inflation rate is credited to a major slump in the core inflation sub-index at the rate of 16 per cent on all items, except food, in the month under review. Experts say that it is very necessary for government to further inject additional funds to boost economic activities.