The Abuja Chamber of Commerce and Industry (ACCI) has welcomed Nigeria’s exit from recession in the fourth quarter of 2020.
The Chamber’s President, Dr. Al-Mujtaba Abubakar in a press release stated that the growth in agriculture and telecommunications which offset a sharp drop in oil production was impressive and prays other sectors pick up as well.
The economy slipped into recession in the third quarter of 2020 with a decline of 3.6 per cent, having contracted 6.1 per cent in the second quarter, leading to Nigeria’s second recession in five years.
For the full year 2020, the economy contracted 1.92 per cent, better than the International Monetary Fund projection.
Meanwhile, despite wobbling out of recession, Nigeria’s headline inflation rose to 16.47 per cent in January 2021; by implication, there will be sustained inflationary pressures on consumers’ purchasing power in the coming months, causing a strain on businesses in the country.
The ACCI while commending government in its efforts at taking the country out of poverty, urged government to build on more fiscal and monetary measures towards addressing the constraints of farmers, SMEs and manufacturers which are critical at this stage to drive sustainable growth of the country.
The Chamber also emphasized on government to further reduce its reliance on proceeds from the sale of crude oil.
“In addition, government at all levels must forge partnerships between Universities, Research Institutions, the Private sector and Public sector institutions in developing and implementing solutions that aid productivity in the agriculture and manufacturing sectors. This will be important in order to build a sustainable productive base for the nation” Dr. Al-Mujtaba said.
The ACCI President also commended FG in its drive to improve the decay in the infrastructural sector commending its $2bn rail line project connecting Kano to Niger Republic adding that the reopening of the four land borders was also a step in the right direction.
ACCI Media Officer
18th, February 2021