Nigeria’s Q2 2.51% GDP growth rate, not inclusive –Uwaleke

Professor of Finance and Capital Market at the Nasarawa State University Keffi, Uche Uwaleke, has said that the Gross Domestic Product (GDP) released Friday by the National Bureau of Statistics is not good for a developing economy like Nigeria. According to Uwaleke, the growth failed to address the twin issues of poverty and unemployment. The first Nigerian Professor of the Capital Market said: “In my view, this identified growth pattern, weighted in favour of the services sector, is not healthy for a developing economy such as ours. “Little wonder, economic growth does not appear inclusive, reflecting in rising unemployment and poverty levels (new NBS methodology attempts to mask this).” The NBS in its Q2 2023 GDP report stated that Nigeria’s Gross Domestic Product growth rate slowed to 2.51 per cent year-on-year in the second quarter of this year (Q2 2023) compared to 3.54 per cent recorded in Q2 2022, The former Imo State finance commissioner noted that while the oil sector tanked considerably on account of reduction in crude oil production, growth was driven by the non-oil sector. “The Non-oil sector performance was powered by the Services sector (4.42%) especially by Telecoms, Trade, Financial services,  “Industry sector appeared hugely impacted by rising inflation during the quarter. Growth rate was negative at -1.94% compared to 0.31% in Q1, 2023 “The sudden removal of fuel subsidy in May could be blamed for the plunge in the Transportation sector by over 60 points from Q1 2023. “The Agriculture sector (comprising 4 activities, though dominated by crop production) printed a slightly improved performance over Q1. But, (shy of 2%) is still far from its pre COVID’19 levels, he said. To address the imbalance, Uwaleke insisted that it is “time we reset this faulty economic structure, leveraging technology, in favour of the productive sectors: Industry and Agriculture.”

Give Tinubu benefit of doubt, Uwaleke appeals to Nigerians

Professor of Finance and the Capital Market at the Nasarawa State University, Uche Uwaleke, has called on Nigerians to give President Bola Ahmed Tinubu the benefit of the doubt. The President had in a nationwide broadcast on Monday in Abuja, reeled out a number of measures meant to cushion the effects of the removal of fuel subsidy. In his inauguration speech, the President said fuel subsidy was gone forever. According to him, his administration would rather channel the savings from the subsidy removal into other critical sectors of the economy. In his broadcast, the President said his administration has proposed the sum of N75 billion to fund enterprises at 9% interest per annum; N125 billion to energize MSME; release 200,000 Metric Tonnes of grains; 225,000 metric tonnes of fertilizer,  seedlings, and other inputs to farmers; and N50 billion each to cultivate 150,000 hectares of rice and maize. Also, the federal government will also make available N50 billion each to cultivate 100,000 hectares of wheat and cassava, N100 billion to acquire 3000 units of 20-seater CNG-fuelled buses and review the minimum wage. Uwaleke said: “The President’s address to the nation is quite soothing. “He spoke in clear terms and I think Nigerians should allow him the benefit of the doubt.” The first Professor of the Capital Market in Nigeria was however concerned that President Tinubu failed to tell Nigerians how the executive will also make sacrifices. “But it was short on how the three arms of government will share in the pains of the governed, especially with respect to affecting a significant cut in the cost of running government,” he asked.