In its second quarter report, the NBS put the inflation rate at 17.1 per cent, It said the Gross Domestic Product (GDP) had contracted by 2.06 per cent in the second quarter. The economy contracted by 0.36 per cent in the first quarter.
The crisis is largely due to over dependence on oil as the mainstay of the economy over the years. It constitutes 70 per cent of Nigeria’s GDP and over 90 per cent of the value of its exports.
Speaking after the Federal Executive Council (FEC) meeting presided by President Muhammadu Buhari on Wednesday she said: “It’s the worst possible time for us. Are we confused? Absolutely not. How are we going to get ourselves out of this recession. One, we must make sure that we diversify our economy. There are too many of us to keep on relying on oil.”
“We can see what happened at the output data of the oil and gas sector. What’s happening in the Niger delta has dragged down the GDP of the entire economy. We’re too dependent on oil whereas 87 percent of our GDP is oil. So let us drive those other areas
“We have to invest in capital projects. No, we are not confused, the time is confusing but we are not confused. We are extremely focused. We know that if we can just bare and get through this difficult period, Nigeria is going to be better for it.
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“If we rely on oil and the price of oil remains low and the quantity of oil remains low, we can’t grow. We have to grow our non-oil economy. I think we that we have a long way to go.
“We’re not confused and we’re not deceiving ourselves that everything is rosy. It’s not. It’s a difficult time for Nigeria but I think Nigeria is in the right hands and if we can stick with our strategy. We still have some adjustments to make. I think we need to make some adjustments in monetary policy. It’s quite clear we do and we will do that. We’re working on that. We need to try and find a way to support the manufacturing sector better and we will do that.” She added
She also pointed out that the high inflation rate in the country is cost-pushed and added that the FEC has approved external three-year rolling borrowing plan.
The plan, she said, will be transmitted to the National Assembly for the approval.