Nigeria’s Economy Will Be Reviewed Upwards If GDP Growth Is Sustained – LCCI

THE Lagos Chamber of Commerce and Industry (LCCI) has said Nigeria’s economic growth will be accelerated if the Gross Domestic Product (GDP) recorded in the second quarter of 2021 is sustained.

The LCCI the 5% GDP growth recorded in the second quarter of 2021 was strong and desirable.

The National Bureau of Statistics  released the national accounts for Q22021 showing that GDP grew by 5.0% year on year compared with 0.5% recorded in Q12021.

“When we look at the non-oil growth of 6.7% y/y compared with the 0.79% in Q1. This shows anincrease in non-oil sector activities through growth in Trade, Information andCommunication (Telecommunication), Transportation (Road Transport),Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage& Tobacco),” the LCCI said.

The chamber of commerce stated that loss of jobs due to the negative effects of the pandemic may have driven more people into the retail trade, commerce, and logistics, adding that the positive growth in the transport subsectors such as road and rail transport may have also had some positive impact on trade with the easing of movement.

According to the LCCI, this is also evident that the Nigerian economy is recovering fast and sustained by the reduction in supply chain disruptions especially as there was no serious lockdown on economic activities in the second quarter.

“The Economist Magazine’s ranking of global recoveries ranked Nigeria at 4^th position in the world as at end of 2020. The easing of movement has supported the increase in economic activities across the country where we still experience serious security challenges,” the chamber of commerce said.

It however stated the country must watch and respond appropriately to the major threats to the growth performance such as the third wave of COVID-19 infections that could lead to restrictions of movement, the rising spate of insurgency, banditry, kidnapping, and the persistent farmer/herder conflicts.

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The LCCI said, “The contraction in ICT growth in Q2 is simply a base effect factor when you look at the positive growth in Q2 compared to what was recorded in preceding quarters especially in 2020. The Information and Communication Sector grew by 5.50% in Q2 2021 from 6.31% in Q1 2021 and 16.52% in Q2 2020.

“The concentration on the use of ICT during the lockdown periods of 2020 recorded a double-digit growth rate. Since this year we have recorded single-digit because the use concentration may have slightly reduced especially as comparatively fewer people work from home against what was obtained in 2020.”