Experts: Nigeria Will Overcome Recession Soon

Economic experts have said that the drop in inflation figure from 18.72 in January to 17.78 per cent in February was a signal that the country’s economy would overcome recession soon. The experts told the News Agency of Nigeria (NAN) on Wednesday in Abuja that the 0.94 per cent inflation decline was an indication that recession could end before the end of the second quarter of 2017.

The National Bureau of Statistics (NBS) February Consumer Price Index (CPI) indicated that inflation rate dropped to 17.78 per cent for the first time in 15 months. Mr Lawrence Ode, a development economist while reacting to the decline, told NAN that the reduction signified the commencement of a drop in the rising cost of goods and services in the country.

Ode said that the current inflation figure would ultimately have a positive effect on the purchasing ability of Nigerians and was capable of growing the country’s Gross Domestic Product. Mr Moses Odo, a Banker also told NAN that the current decline in inflation figure would impact positively on lending rate by deposit money banks and cause interest rates on loans and advances to reduce.

He said it would also stimulate the confidence of foreign investors to consolidate their investments in the country. Odo attributed the drop in inflation rate to a major slump in the core inflation sub-index at the rate of 16 per cent on all items, except food, in the month under review. Odo said it was very necessary for government to further inject additional funds to boost economic activities.

 (NAN)