By Chris Ochayi, Henry Umoru & Inalegwu Shaibu
ABUJA—Nigeria Bureau of Statistics (NBS) has said that the partial removal of subsidy on petroleum prices, the concomitant strike action and civil protest slowed economic growth to 6.17 per cent in the fist quarter of the year even as the Central Bank of Nigeria (CBN) warned that the proposed removal of its autonomy can lead to a collapse of the nation’s economy.
On the other hand, the Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Senator Ayo Ademola Adeseun, ACN, Oyo Central has warned that if very drastic action was not taken on the nation’s economy the next two years will be bad for the country.
Mangoes on display at Zuba Fruit Market in Abuja.NAN Photos
In its first quarter report of economic activities in the country the NBS said, “ The first quarter of 2012 witnessed a decline in economic activity due largely to the partial removal of subsidy on petrol, the subsequent civil protest and weaker consumer demand following the higher price levels across major segments of the economy. Higher costs of production and prevailing security concerns also contributed to the decline in growth rate of real GDP during the period.
“Nigerian economy when measured by the Real Gross Domestic Product (GDP) on an aggregate basis, grew by 6.17 percent in the first quarter of 2012 as against 7.13 percent in the corresponding quarter of 2011. This result however surpasses NBS’ earlier growth forecast for the quarter of 5.34 percent, which suggests the economy is mo r e resilient than other-wise anticipated.
N e v e r t h e l e s s , stronger growth is expected in the second quarter of 2012 as a result of recent sectoral policies in the non-oil sector. The 0.96 percentage point decrease in real GDP growth recorded in the first quarter of 2012 was as a result of decrease in both oil and non oil sectors (manufacturing, wholesale and retail, telecommuni-cation, among others). The 0.96 percentage
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