The National Bureau of Statistics (NBS) has revealed that Nigeria’s economy slumped 1.5% in 2016, its first yearly contraction in a quarter of a century.

“This contraction reflects a difficult year for Nigeria, which included weaker inflation-induced consumption demand, an increase in pipeline vandalism, significantly reduced foreign reserves and a concomitantly weaker currency,” the statistics office said.

The Federal government as part of its medium-term economic recovery plan, targets a yearly growth rate of 7% GDP by 2020. It also said that improvement in crude prices and the restoration of stability in the Niger River delta will help the economy recover this year.

Nigeria entered its first recession in 25years in Q2 of 2016 driven by the sharp drop in crude prices which hit public finances and battered the naira currency as well as attacks on oil installations by militants in the Niger Delta oil-hub. The IMF forecasts the economy will grow by 0.8% in 2017.

Anita Fatunji