Nigeria records lowest investment inflow VC Ezems

Nigeria records lowest investment inflow

Kemi Adeosun, Finance Minister

The National Bureau of Statistics on Wednesday said the Nigerian economy recorded its lowest level of investment with a total investment inflow of $647.1m in the second quarter of 2016.

The bureau in the capital importation report which was released by the Statistician General of the Federation,said the $647.1m represents a fall of 8.98 per cent relative to the first quarter.

It added that the decrease is also a decline of 75.73 per cent relative to the second quarter of 2015.

The report reads in part, “The total value of capital imported into Nigeria in the second quarter of 2016 was estimated to be $647.1m, which represents a fall of 8.98 per cent relative to the first quarter, and a fall of 75.73 per cent relative to the second quarter of 2015.

“This provisional figure would be the lowest level of capital imported into the economy on record, and would also represent the largest year on year decrease. This would be the second consecutive quarter in which these records have been set.”

I another development, the National Bureau of Statistics on Wednesday released the much-awaited Gross Domestic Product figures for the second quarter of 2016 with the GDP growth rate sliding further from -0.36 per cent in the first quarter to -2.06 per cent year-on-year.

The negative growth rate recorded in the second quarter of this year is a confirmation of the predictions by the Federal Government and economists that the country was heading into recession.

A recession is defined as a significant decline in activities across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale retail trade.

The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country’s GDP.

In the GDP report released by the NBS, the bureau said, “In the second quarter of 2016, the nation’s Gross Domestic Product declined by -2.06 per cent (year-on- year) in real terms.

“This was lower by 1.70 per cent points from the growth rate of –0.36 per cent recorded in the preceding quarter, and also lower by 4.41 per cent points from the growth rate of 2.35 per cent recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP increased by 0.82 per cent.”