‘Economy out of recession since June’
The Bankers Committee of the Central Bank of Nigeria and other financial institutions yesterday said the economy may have come out of recession as far back as the second quarter of 2017.
Addressing reporters at the end of the Bankers Committee meeting in Abuja yesterday, CBN’s Director, Banking Supervision Mr. Ahmed Abdullahi, said “the Bankers Committee noted the turnaround in the economy regarding the progress that has been made in getting the economy out of recession, we have strong belief that the second quarter of the year may have seen the economy emerging out of recession.”
Abdullahi added that “there are reasons to believe this; the non-oil sectors have witnessed growth, although the numbers are not yet out from the National Bureau of Statistics but the fact that major non oil sectors have witnessed positive growth and the growth is driven largely by the oil sector. Then, there is this belief that a number of analysts believe that the economy could have been out of recession by the second quarter of 2017.”
The director cautioned that “we await the numbers from the NBS, but there is this strong belief and a number of other reasons as well. “If you look at the confidence in the economy, if you look at the upsurge in the capital market, stability of the forex market, you will know that a lot of efforts have been made in getting the economy out of recession.”
To Abdullahi, “this is a welcome development because it is going to have a rob-on effect on the banking sector and other sectors of the economy generally and the Bankers Committee generally expressed its delight with this development in the economy”.
FSDA Merchant Bank Managing Director Mrs Hamda Ambah said while some of the figures on the positive turn of the economy were not yet out, “we do know that NBS released figures that showed the Purchasing Managers Index (PMI) months after months for four consecutive months, that things were improving in the manufacturing sector. All these together help to buttress the point that we may not be totally out of the woods, but things are certainly looking up and in the right direction.”