Stakeholders in the oil and gas sector have expressed optimism that Nigeria’s exit from economic recession will help to stabilise the industry. They also commended the Federal Government’s effort at exiting the country from the recession. They made the commendation in separate interviews with the News Agency of Nigeria (NAN) on Wednesday in Lagos following the National Bureau of Statistics (NBS) Gross Domestic Product Report for the second quarter 2017.
The National Bureau of Statistics (NBS) had on Tuesday said Nigeria exited its worst economic recession in more than two decades, notching up growth of 0.55 per cent in the second quarter of 2017. Dr Afe Mayowa, President, Oil and Gas Trainers Association of Nigeria (OGTAN), said Nigeria ‘s exit from recession would bring stability in the oil and gas sector, adding that “it’s an indication of good things coming to the industry’’. Mayowa said that the sector would gradually regain its lost glory, adding that it controlled over 90 per cent stake in the economy. According to him, the Federal Government has been working hard in ensuring the sector gets over its challenges.
“There is peace and tranquillity in the oil communities.” Mr Dada Thomas, the National President, Nigeria Gas Association (NGA), said it was good news that Nigeria’s economic growth stood at 0.55 per cent in the second quarter of 2017. Thomas said that government could achieve better and faster growth rate by encouraging gas to power, while urging government to ensure effective policy formulation that would attract investment in the oil and gas sector. Mr Muda Yusuf, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), said that the empirical issues affecting the economy were still there, but added that the latest figures showed that there was improvement at the macro level.
According to him, this gives positive signals to investors that the economy is turning around. “It shows that some of the positive steps are taking effect at the macro level. “However, the challenges of productivity, business environment and costs of doing business need to be addressed. “On the part of citizens, they are worried about their social welfare while businesses are worried about several hindrances and costs of doing business. Worries vary across the board,’’ he said. The Managing Director, Degeconek Nig. Ltd, Mr Abiodun Adesanya, said it was possible for Nigeria to be out of recession, as the country’s economy was heading to the right direction. Adesanya commended the NBS pronouncement that Nigeria was out of recession “because the prediction had always been that things were heading in the right direction”.
According to him, it simply means Nigerians should continue with that trajectory so that they don’t nosedive again. The citizens need to be careful so that they don’t have wastage. “However, the implication is that we have to ensure that we really build upon what we did and ensure it has direct impact on what we are doing. “It is also very important that we take lessons learnt and that we actually apply those lessons so that we don’t make the mistakes all over again.