Economy
Nigeria’s Exit from Recession Sweetens Presidency
By Modupe Gbadeyanka
The announcement today by the National Bureau of Statistics (NBS) that Nigeria has officially exited recession has gladdened the Presidency.
A statement issued today by Mr Laolu Akande, spokesperson to Vice President, Mr Yemi Osinbajo, said the Buhari administration welcomes news with cautious optimism.
Mr Akande promised that the present administration will continue to drive Nigeria’s economic growth by vigorously implementing the Economic Recovery & Growth Plan (ERGP) launched earlier this year by President Muhammadu Buhari.
He further said the overall economic plan and direction of the administration has resulted, among others, in sustained restoration of oil production levels, (occasioned by the enhanced security and stability in the Niger Delta) sustained growth in agriculture, mining and the first growth recorded in industry as a whole in the last nine quarters since fourth quarter of 2014.
Quoting the Special Adviser on Economic Affairs to the President, Mr Adeyemi Dipeolu, the statement noted that the GDP figures give grounds for cautious optimism especially as inflation has continued to fall from 18.72 percent in January 2017 to 16.05 percent in July 2017.
Mr Dipeolu added that, “Foreign exchange reserves have similarly improved from a low of $24.53 billion in September 2016 to about $31 billion in August 2017.
“In the same vein capital importation grew by 95 percent year-on-year driven by portfolio and other investments but also notably by foreign direct investment which increased by almost 30 percent over the previous quarter.
According to the President’s aide, “Overall, the end of the recession is welcome but economic growth remains fragile and vulnerable to exogenous shocks or policy slippages.
“Accordingly, it remains essential to intensify efforts going forward on the implementation of the ERGP to achieve desired outcomes including sustained inclusive growth, further diversification of the economy, creation of jobs and improved business conditions.”
Today, the stats office said in the second quarter of this year (Q2 2017), the economy grew in by 0.55 percent from -0.91 percent in Q1 2017 and -1.49 percent in Q2 2016.
This in effect means that the Nigerian economy has exited recession after five successive quarters of contraction.
Below is the full statement released by the Presidency on Tuesday in reaction to the news of the exit from recession.
The Buhari administration welcomes news of Nigeria’s exit from recession with cautious optimism and will continue to drive Nigeria’s economic growth by vigorously implementing the Economic Recovery & Growth Plan launched earlier this year by President Muhammadu Buhari.
The overall economic plan and direction of the administration has resulted, among others, in sustained restoration of oil production levels, (occasioned by the enhanced security and stability in the Niger Delta) sustained growth in agriculture, mining and the first growth recorded in industry as a whole in the last nine quarters since Q4 2014.
Below Is A Statement By Special Adviser On Economic Adviser To The President, Dr. Adeyemi Dipeolu On The 2nd Quarter 2017 Figures Just Released By The National Bureau Of Statistics
The figures released by the National Bureau of Statistics for the second quarter of this year (Q2 2017) show that the economy grew in Q2 2017 by 0.55% from -0.91% in Q1 2017 and -1.49% in Q2 2016. This in effect means that the Nigerian economy has exited recession after five successive quarters of contraction.
This positive growth is attributable to both the oil and non-oil sectors of the economy. Growth in the oil sector which has been negative since Q4 2015 was positive in Q2 2017. It rose by 1.64% as compared to -15.60 in Q1 2017, an increase of up to 17 percentage points. This improvement is partly due to the fact that oil prices which have improved slightly from the lows of last year have been relatively steady as well as the fact that production levels were being restored.
The non-oil sector grew by 0.45% in Q2 2017, a second successive quarterly growth after growing 0.72% in Q1 2017. This increase which was not quite as strong as it was in Q2 2016 reflects continuing fragility of economic conditions. However, given that nearly 60% of the non-oil sectors contribution to GDP is influenced by the oil sector, growth in the oil sector will help boost the rest of the economy.
The positive growth seen in agriculture when the rest of the economy was contracting was maintained at 3.01% which is encouraging especially if seasonal factors are taken into account. Manufacturing growth was also positive at 0.64% and although lower than the previous quarter’s growth of 1.36%, it was an a noticeable improvement over the -3.36% experienced in Q2 2016 and a continuation of the turnaround of the sector. Solid minerals which remain a priority of the Administration also continued to grow and in Q2 2016 by 2.24%.
Overall, industry as a whole grew by 1.45% in Q2 2017 after nine successive quarters of contraction starting in Q4 2014. This positive development was somewhat overshadowed by the continued decline in the services sector which accounts for 53.7% of GDP. Nevertheless, electricity and gas as well as financial institutions grew by 35.5% and 11.78% respectively in Q2 2017.
The GDP figures give grounds for cautious optimism especially as inflation has continued to fall from 18.72% in January 2017 to 16.05% in July 2017. Foreign exchange reserves have similarly improved from a low of $24.53 in September 2016 to about $31 billion in August 2017. In the same vein capital importation grew by 95% year-on-year driven by portfolio and other investments but also notably by foreign direct investment which increased by almost 30% over the previous quarter.
Foreign trade has also contributed to improving economic conditions with exports amounting to N3.1 trillion in Q2 2017 while imports which increased by 13.5% amounted to N2.5 trillion in the same period. The overall trade balance thus remained positive at N0.60 trillion.
Unemployment however remains relatively high but job creation is expected to improve as businesses and employers increasingly respond more positively to the significantly improving business environment and favorable economic outlook.
Besides, as key sectoral reforms in both oil and non-oil sectors gain traction, the successful implementation of ERGP initiatives such as N-Power and the social housing scheme will boost job creation.
Food inflation also bears watching as it has remained quite high and volatile due mostly to high transport costs and seasonal factors such as the planting season. Investments in road and rail infrastructures, increased supply and availability of fertilizers and improvements in the business environment should contribute to the easing of food prices.
Overall, the end of the recession is welcome but economic growth remains fragile and vulnerable to exogenous shocks or policy slippages. Accordingly, it remains essential to intensify efforts going forward on the implementation of the ERGP to achieve desired outcomes including sustained inclusive growth, further diversification of the economy, creation of jobs and improved business conditions.”
The Covid-19 pandemic brought a different work mode globally that promised freedom: remote work. This new work approach brought along technological innovations that aided the conveniences that accompanied it: the ability to work from anywhere, collaborate across time zones, and build a career without borders. But the one problem nobody warned us about was that getting paid and using that money shouldn’t require a finance degree.
Remote workers in Nigeria sought various avenues to navigate international payments, and one of the solutions that was provided was OneDosh, which has now become the bridge between earning globally and spending locally. Built by global fintech leaders, OneDosh developed solutions to solve these problems.
We will be focusing on how real people are using the platform to simplify their financial lives in this article.
The Payment Waiting Game Nobody Talks About – Chioma’s Story
Chioma works as a social media manager for two U.S. companies and a UK-based startup. Her biggest frustration isn’t the work itself or managing clients across time zones. It’s the anxiety that comes every payment cycle when she wonders if her domiciliary account will receive the wire transfer, or if this will be the month her bank flags the transaction for “verification” that takes weeks to resolve.
She’s had months where a $2,000 payment got stuck in banking limbo for three weeks while her landlord sent messages about rent. The experience taught her that having multiple international clients doesn’t guarantee financial stability when you can’t reliably access your earnings.
OneDosh changed her approach entirely. Now when clients pay her in stablecoins, the money arrives within minutes and she can decide immediately what to do with it, whether to convert to naira for immediate expenses, keep in USD for savings, or split between both. The control matters more than the speed, though the speed helps when bills are due.
When Your Card Works Until It Doesn’t – Tunde’s Story
Tunde learned the hard way that Nigerian debit cards have spending limits that make international subscriptions a constant negotiation. His Adobe Creative Cloud subscription failed three months in a row despite having money in his account. Customer support would apologize, he’d try a different card, and the cycle would repeat until he eventually had to ask a friend abroad to pay for it while he reimbursed them.
The OneDosh visa card solved this specific problem, but more importantly, it eliminated the unpredictability. He uses it for all his international subscriptions now like software tools, cloud storage, freelancing platform fees, without wondering if this will be the month his bank decides the transaction looks suspicious. The card works consistently, which sounds basic until you’ve experienced the alternative.
Naira Volatility and the Dollar Earning Advantage – Blessing’s Experience
For remote workers earning in dollars, the mathematics of currency conversion has become a monthly calculation that affects every financial decision. Blessing, a freelance writer, watches exchange rates the way other people check weather forecasts. A project that pays $500 means something very different in naira depending on when and how she converts it.
Her previous system involved converting everything to naira immediately at the offered rate, rather than exploring other options but felt safer than alternatives she didn’t fully understand. With OneDosh, she keeps her dollar earnings in the Onedosh wallet until she needs them; converting smaller amounts as needed rather than converting everything at once. This helps her manage timing and stay mindful of exchange rates and fees.
The Family Support Reality – Emeka the Tech Bro
Remote work success in Nigeria often means becoming the family member others turn to when emergencies arise. Emeka earns well working for a Canadian tech company, which means he’s frequently sending money to siblings for school fees, parents for medical bills, or extended family for various urgent needs.
Sending support shouldn’t feel complicated or time-consuming. With OneDosh, he can transfer funds seamlessly from wherever he is, with a simple and straightforward process. This flexibility is especially valuable when someone needs access to funds at a critical moment, allowing him to respond quickly and confidently.
“Although he believes this hasn’t made him richer, it certainly has made helping family significantly less stressful and time-consuming, which matters when you’re trying to balance work deadlines with family obligations.”
The Nigerian remote worker experience involves navigating payment systems that weren’t built for how we work now. Blocked transactions, unclear fees, conversion rate losses, spending limits etc are barriers that make earning internationally harder than it needs to be.
OneDosh doesn’t eliminate every challenge remote workers face, but it addresses several major ones directly. The platform works with the reality of Nigerian remote workers rather than pretending those realities don’t exist.
If you’re managing international payments, download the OneDosh app, It is designed to help you handle things more smoothly.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange further dropped 0.35 per cent on Tuesday, March 17, with the market capitalisation down by N8.80 billion to N2.471 trillion from the preceding day’s N2.480 trillion, and the NASD Unlisted Security Index (NSI) dipping by 14.71 points to 4,130.89 points from 4,145.60 points.
The loss recorded during the session was influenced by three securities, which overpowered the gains recorded by four stocks.
Okitipupa Plc lost N15.00 to sell at N215.00 per unit compared with the previous day’s N230.00 per unit, FrieslandCampina Wamco Nigeria Plc depreciated by N1.23 to trade at N122.32 per share versus Monday’s closing price of N123.55 per share, and Afriland Plc declined by 90 Kobo to quote at N17.05 per unit versus N17.95 per unit.
On the flip side, Central Securities Clearing System (CSCS) gained 36 Kobo to close at N75.43 per share versus the preceding session’s N75.07 per share, Geo-Fluids Plc added 6 Kobo to trade at N3.11 per unit compared with the previous day’s N3.05 per unit, Lighthouse Financial Service Plc improved by 5 Kobo to 60 Kobo per share from 55 Kobo per share, and Industrial and General Insurance (IGI) Plc rose by 1 Kobo to 55 Kobo per unit from 54 Kobo per unit.
Yesterday, the volume of securities surged by 97.5 per cent to 921,265 units from 265,610 units, the value of securities advanced by 64.6 per cent to N54.7 million from N33.2 million, and the number of deals went up by 46.2 per cent to 38 deals from 26 deals.
The most active stock by value (year-to-date) was CSCS Plc with 38.7 million units worth N2.4 billion, trailed by Okitipupa Plc with 6.4 million units valued at N1.2 billion, and FrieslandCampina Wamco Nigeria Plc traded 6.8 million units for N649.1 million.
The most traded stock by volume (year-to-date) was Resourcery Plc with 1.1 billion units sold for N415.6 million, followed by Geo-Fluids Plc with 130.9 million units exchanged for N505.1 million, and CSCS Plc with 38.6 million units worth N2.4 billion.
By Dipo Olowookere
A 0.54 per cent surge was witnessed by the Nigerian Exchange (NGX) Limited on Tuesday as a result of strong investor demand and broad-based gains in the banking and industrial goods sectors.
According to data from the bourse, the industrial goods space expanded by 4.44 per cent, and the banking index chalked up 4.30 per cent, offsetting the losses recorded by the three other indices due to profit-taking.
Business Post reports that the consumer goods sector depreciated by 1.30 per cent, the insurance counter shrank by 0.41 per cent, and the energy landscape lost 0.13 per cent.
At the close of business, the market capitalisation soared by N696 billion to N130.026 trillion from N129.330 trillion, and the All-Share Index (ASI) surged by 1,084.52 points to 202,559.41 points from 201,474.89 points.
BUA Cement ended the day as the best-performing equity after it jumped 10.00 per cent to N326.70, Premier Paints appreciated by 9.86 per cent to N23.40, Zenith Bank expanded by 7.91 per cent to N111.15, NAHCO moved up by 7.14 per cent to N175.60, and RT Briscoe grew by 6.67 per cent to N11.20.
Conversely, Presco was the worst-performing equity, with a decline of 10.00 per cent to quote at N1,875.60. Caverton dropped 8.70 per cent to N6.30, Secure Electronic Technology lost 7.69 per cent to trade at N1.20, Guinea Insurance shed 6.43 per cent to quote at N1.31, and International Breweries crashed by 6.35 per cent to N14.00.
During the session, 1.8 billion shares worth N88.1 billion exchanged hands in 62,654 deals compared with the 948.2 million shares valued at N49.2 billion traded in 72,735 deals a day earlier, implying a contraction in the number of deals by 13.72 per cent, and an expansion in the trading volume and value by 89.83 per cent and 79.07 per cent, respectively.
Dominating the activity chart was FCMB with a turnover of 516.2 million equities valued at N6.6 billion, Wema Bank transacted 213.4 million shares for N5.6 billion, Zenith Bank traded 163.1 million stocks worth N18.1 billion, Access Holdings sold 123.9 million equities valued at N3.2 billion, and GTCO exchanged 100.0 million shares worth N12.4 billion.
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