- Says 2020Q4 GDP Reflects Importance Of Non-oil Sector
Nigeria’s Federal Government, on Sunday announced plans to boost its Off-take Scheme, with the injection of additional N15bn in support local businesses by off-taking a number of products in a bid to sustain them and create jobs.
Updating the media on the progress made under President Muhammadu Buhari’s Economic Sustainability Programme and the latest GDP released by the National Bureau of Statistics, Laolu Akande, Senior Special Assistant to the President on Media and Publicity in the Office of the Vice President, said the scheme will cover products like facemasks, liquid soaps, disinfectants, hand sanitizers, and other processed foods and spices.
Altogether, Akande explained that the programme tagged Government Off-taker Scheme “will benefit 100,000 MSMEs, while an additional 100,000 Nigerians will also be benefiting from a one-off N50,000 MSME grant different from those already paid to artisans, transport workers and separate from the payroll support.”
The Q4 2020 Gross Domestic Product (GDP), he recalled, grew by 0.11%, after two consecutive quarters of negative growth, showing “an exit from the pandemic induced recession. This positive quarterly growth in Q4 2020 contributed to overall GDP, which contracted by -1.92% for the full year in 2020.”
Quoting a Presidency report, Akande said the report “is important for a number of reasons. It is a reflection of the growing importance of the non-oil sector, as its contribution to GDP has increased from 92.68% in Q4 2019 to 94.13% in 2020Q4. The non-oil sector performance was mainly driven by growth in Information and Communication, as the pandemic meant greater use of ICT services.
“Growth in Agriculture, Manufacturing, Mining, Construction, and Real Estate also contributed to the improvement of the non-oil sector.”
The Presidency review, he continued, noted that however “in contrast, the oil sector fell by -19.76% in Q4 2020 (6.36% in Q4 2019) as average oil production declined to 1.5 million barrels per day (1.5mbpd). This can be attributed to Nigeria’s compliance with OPEC+ quotas.”
It was observed that the “report indicates that Nigeria’s response to the COVID-19 induced shocks, the Economic Sustainability plan and the timely revision of the Federal Government budget, were effective.”
Furthermore, Akande explained, “the Nigerian Economy outperformed various analysts’ expectations like the IMF and World Bank. In addition, Nigeria’s quarter on quarter growth of 9.7% surpassed China (2.6%), USA (4%), and Japan (3%) despite these countries having larger stimulus packages.”
In conclusion, the report stated that “the Nigerian economy performed reasonably despite the earlier lockdown, trade disruptions, #EndSars protests, and oil price volatility. There is optimism as oil prices continue to stabilize, COVID-19 cases reach a plateau, success of an imminent vaccine rollout, and continued effective implementation of the Economic Sustainability Plan.”
Nigeria’s prompt exit from recession, Akande assured, is a key indicator of the success of the ongoing Economic Sustainability Plan approved by the Federal Government, following which “Nigerians should expect more as the implementation of the Plan is gathering even greater momentum.”
President Buhari and the Federal Executive Council had approved the plan last June, with Vice President Yemi Osinbajo asked to lead the implementation aimed, among others, at preventing a deep recession and putting cash in the hands of Nigerians after the economic fallouts of the pandemic.
Akande noted that right from the 2020 third quarter, the economy was already on a rebound adding that the latest fourth-quarter figures show that indeed, the recovery of the Nigerian economy is a steady one.
“Like we explained late last year after the release of the third-quarter figures, the Economic Sustainability Plan, which was a calculated intervention by the Buhari Presidency, is driving the Nigerian economy in the right direction-upwards, and Nigerians can expect more because the administration is unrelenting in its determination to pursue the steady recovery and growth of our economy,” Akande noted.
The Presidential spokesperson said the ESP is entering into an even more potent phase with the revving up of plans for five million solar installations across the country and a social mass housing plan that will result in hundreds of thousands of affordable houses for ordinary Nigerians. Both aspects he noted, will yield several hundreds of jobs besides giving the national economy a significant spur like never before.
So far, he explained, the Survival Fund is making waves with MSMEs, artisans, transport workers, hundreds of thousands receiving cash stimulus, and the payroll support where an equal number of people running into hundreds of thousands employed by businesses are collecting N50,000 monthly.
According to the Presidential spokesman, the payroll support covers three months’ salaries for beneficiaries, and already about 311,000 employees have received support, coming from 64,000 businesses nationwide and over 165,000 artisans have also benefited from the Survival Fund. In all, the Survival Fund is on course to safeguard at least 1.3m jobs.