The Association of Capital Market Academics of Nigeria said the fourth-quarter gross domestic product growth of 0.11 percent would boost foreign investment and enhance the country’s credit rating internationally.

The ACMAN President, Uche Uwaleke, said this in an interview with the News Agency of Nigeria on Friday while reacting to the Q4 GDP figure released by the National Bureau of Statistics.

The NBS on Thursday said the country’s GDP grew by 0.11 percent (year-on-year) in real terms in the fourth quarter of 2020 from the 6.11 percent contraction in Q3, signalling a gradual recovery from recession.

Uwaleke said, “It may be just number, but the 0.11 percent positive growth in real GDP year-on-year recorded in the fourth quarter of 2020 has information content.

“It is, without doubt, an upside surprise that sends a positive message to the international community, especially the multilateral institutions, rating services, and investment banks, that the Nigerian economy is resilient and has the capacity to withstand shocks.”

He noted further, “I won’t be surprised if it triggers an upward revision in growth forecasts for Nigeria in 2021 by the IMF and the Fitch, which had projected weak growth rates of 1.5 percent and 1.7 percent, respectively. It is instructive to note that favourable news about any economy can influence increased flow of foreign investments.

“Coming on the heels of the emergence of Dr. Ngozi Okonjo-Iweala as the director general of the World Trade Organisation, this is another pleasant news from Nigeria at a time when many economies are still in a recession.”

He explained that the NBS report showed the nation’s economy could survive without the oil sector.

“The NBS report has a number of lessons. The first is that the Nigerian economy can actually survive without the oil sector. The growth rate in Q4 2020 was powered by the non-oil sector, which recorded a positive growth of 1.69 percent despite a deep contraction in the oil sector by as much as over 19 percent,” he said.

Mr. Uwaleke noted that the information and communications, agriculture, and real estate sectors were among the top performers.

“The second lesson is that the agriculture sector remains a game-changer, contributing over 24 percent to real GDP and posting a growth rate of 3.42 percent from about 1.3 percent in the previous quarter.

“This is remarkable and largely reflects the increased interventions in this area, especially by the Central Bank of Nigeria. This should be sustained and possibly ramped up,” said Mr. Uwaleke.

According to Mr. Uwaleke, the third lesson is that crude oil output is critical to the oil sector’s performance.

“The OPEC cut agreement notwithstanding, it is important to ensure that the drop is not due to plant shutdowns and vandalism,” Mr. Uwaleke added.

(NAN)