Nigeria economy contracts, but “well on its way out of recession”

Yemi Osinbajo

Ag President, Prof Yemi Osinbajo

Nigeria’s economy is “well on its way out of recession”, the vice president’s office said on Tuesday, after data showing gross domestic product shrank a less-than-previously 1.3 percent year-on-year in the fourth quarter of 2016.

The contraction was a large improvement over the 2.24 percent year-on-year contraction in the third quarter.

While Nigeria’s rapid inflation through 2016 outweighed any economic growth, slowing inflation will enable an early return to expansion, a vice presidency statement said.

It said a range of factors will help the economy recover, including a $1 billion Eurobond issuance this month, an increase in foreign reserves from $23.9 billion last October to $27.8 billion in January and a rise in oil prices and production.