The African Development Bank (AfDB) has projected a moderate economic recovery for Nigeria, saying growth would be at 2.2%.
This is contained its 16th Africa Economic Outlook launched Monday at its 52nd Annual meetings holding in India.
“The outlook for 2017 is for a moderate economic recovery with real GDP projected to grow at 2.2% spurred by increased infrastructure spending and restoration of oil production to previous levels.
However the actualization of the growth forecast may depend largely on how far government’s economic policy reforms and a coherent set of policies to address the macroeconomic challenges and structural imbalances are implemented.
It said that security remains a challenge despite gains made in the conflict with Boko Haram in the north-east and the intensification of dialogue with militants in the Niger Delta.
It however noted the federal government’s commitment to implementing economic recovery and development interventions aimed at addressing the deepening fragility and vulnerability in the conflict-affected north-east and the Niger Delta.
“The acceleration of the implementation of the Nigeria Industrial Revolution Plan (NIRP) is a key priority for fostering industrialization,” it said.
The priority sectors identified in the NIRP are mining and quarrying, which contributed 7.1% to overall GDP in 2016, and manufacturing, which declined 2.6 % year-on-year due to increased costs in business operations, resulting mainly from foreign exchange restrictions.
Specifically, manufacturing sector recorded a general decline in 2016, with an estimated 272 firms shutting down and industrial capacity utilisation dropping significantly from 51.4% in 2015 to 35.4% in 2016.
By Business a.m. live staff