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Increased growth for Nigeria in 2013, inflation drops to lowest level in 4 years

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Increased growth for Nigeria in 2013, inflation drops to lowest level in 4 years

by Stanley Azuakola

Data from the National Bureau of Statistics (NBS) showed yesterday that Nigeria’s economy is expected to grow at 6.75 percent in 2013, up 0.75 percent from the 6.61 percent in 2012.

That’s not the only positive from the new NBS figures: Nigeria’s gross domestic product is also projected to expand by 7.2 percent this year, 6.9 percent in 2015 and 6.6 percent in 2016. This, according to the NBS, is assuming that there is not going to be any change to monetary policy, stable fuel prices and a a stable external environment, which are three arguably unlikely conditions considering Nigeria’s recent history.

This fast growth in the Nigerian economy is being driven by progress in agriculture, banking and oil.

Yet another piece of good news for the economy is that the inflation rate fell from 12 percent in December 2012, to 9 percent in January 2013, marking the first time inflation has dropped as low as 9 percent since May 2008 when it was at 8.7 percent.

All these underscores Nigeria’s growing reputation as an investment destination of choice, especially considering our huge population.

However, considering the continuous cases of insecurity, corruption and unemployment, Nigerians hardly see a direct correlation between the macro-economic growth it’s been enjoying and tangible development.

As expected, the presidency has hailed the new report, touting it as a sign of the government’s transformation. In a statement on social networking site, Twitter, the president’s special adviser on new media, Reno Omokri, said “Nigeria’s economy to grow by 6.75% in 2013 from 6.61% in 2012. Moral of the story-the GEJ admin is delivering growth.

“World Bank reports inflation reducing in Nigeria to single digit. Moral of the story-Our economy is in good shape.”

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