Items filtered by date: Wednesday, 04 September 2019
Wednesday, 04 September 2019 16:23

Nigeria’s GDP declines by 0.16 in Q2

Nigeria’s Gross Domestic Product (GDP) declined by 0.16 per cent in the second quarter of 2019, the National Bureau of Statistics (NBS) said on Tuesday.


The NBS also revealed that the GDP grew by 1.94 per cent in real terms within the same period.

According to the report, if compared to the second quarter of 2018, which recorded a growth of 1.50 per cent, the growth observed in Q2 2019 indicates an increase of 0.44 per cent.

However, when compared to 2.10 per cent recorded in the first quarter of 2019, the Q2 2019 real growth rate indicates a decline of 0.16 per cent.

“During the quarter, aggregate GDP stood at N34,944,151.61 million in nominal terms, an increase of 13.83% over the performance in the second quarter of 2018 and 9.8% over the preceding quarter,” the report noted.

The NBS said that the performance observed in Q2 2019 follows an equally strong first-quarter performance, and was likely aided by stability in oil output as well as the successful political transition.

Overall, a total of 15 activities grew faster in Q2 2019 relative to last year, while 13 activities had higher growth rates relative to the preceding quarter.

On a half-year basis, real growth in the first half of 2019 stood at 2.02 per cent, higher than in 2018 which was 1.69 per cent.

Further analysis on the quarter on quarter shows that the real GDP increased by 2.85 per cent compared to a decline of –13.69 per cent in the preceding period.

Published in News Economy

A time like this is when population strength becomes an advantage. But how often does the government play this card to its favour. It is not enough to send delegates over to a country annihilating your citizens. That’s rather cold. This is not calling for a brutal an eye-for-an-eye.

Levying sanctions, even though might be lifted minutes after, is a clear message that a government communicates the feelings of its citizens. And, this is not asking for too much from a country that has a population advantage over erring racists whose security operatives have failed to ensure safety.

Of course, workers and investors in those South African companies in Nigeria are largely Nigerians and might appear as a bullet shot to one’s boot, at the expense of economic growth. That’s right. However, while this doesn’t matter is for the fact that such sanction is purposeful and arises to an effect.

This can only be a better way to symbolise distress while other measures to contain the attack are looked into. With the correct body language, a lot can be achieved by merely placing sanctions that will halt operation of those companies, no matter how temporary. Such will not only big up the momentum to resolve matters but also put such government on their toes to ensure a second time never comes to be.

What we must understand

No one decides to leave his comfort zone to settle outside if basic needs of life are in place. The high rate of migration out of the Nigerian shores only tells how much government (past and present) have fail(ed)(ing). It’s common sense. No one loves to live as an endangered species. Hence, the government should not take matters as the xenophobic attack lightly.

The government, as chief custodian of its citizens wherever in the world they reside, must therefore stand at all times to the rescue,  displaying compassion and delivering on its security mandate. It suffices to note that the deficit in infrastructure, health, education, etc. is all that influences trans-border migration.

The question

Should a failed government not then be ashamed to further forsake its citizens on a near-to-cheap call for business sanctions that might speed up the checkmating of the mayhem, in form of the killings, going on in South Africa? Reports have it that over 100 South African businesses operates in Nigeria. While this isn’t strange, what is strange is seeing the host country suffering at the mercy of its business partners. With reference to the likes of;

DSTV

SHOPRITE

MTN

PROTEA HOTELS

LTA CONSTRUCTIONS

POWER GIANT

ESKOM NIGERIA

PEP RETAIL STORES


The conversion

The consequence on the part of South Africa is in billions, and no country folds hands to see such happen. In a country of 200 million population, a 1% of people in the boycott gives a rough figure of 2 million non-patronising clients or customers. When an average of a thousand naira is marked off per person that’s N2 billion and if this takes effect for 7 days, that’s N14 billion deficit.

Understanding the root cause of xenophobia

In simple terms, home citizens are afraid as foreigners increases and takes up jobs “meant” for citizens. The case is increased competition for jobs and services. Whenever there is economic hardship, locals feel the foreigners are the chief causes. But, how true? Their belief is simple: once foreigners are out, available resources become evenly distributed.

Way forward

The South African government has a lot to do to ensure safety of lives –irrespective of nationality. And, in the event it cannot, it must be explicitly stated, so, the world (foreigners) may decide to continue the risk or simply back out.

Foreign governments with citizens in South Africa must also challenge the South African government. Doing so comes in different ways –dialogues, sanctions in form of boycott, among others. With the right body language, future occurrence of such racist act as xenophobia can be put to sleep, forever.

 

Mr Itohoimo Udosen

Public Affairs Analyst

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Published in Opinion & Analysis
Wednesday, 04 September 2019 14:37

Ivory Coast, Toyota sign assembly plant deal

Ivory Coast's government have signed an agreement with Toyota to build a vehicle assembly plant in the West African nation, the office of Ivorian Prime Minister Amadou Gon Coulibaly said in a statement.

Faced with stagnant sales in developed economies, automakers including Toyota, Volkswagen, BMW, and Nissan are seeking to break into Africa, considered one of the world's last untapped markets for new cars.

Last Thursday's agreement was signed at a Japan-Africa development conference in Yokohama, Japan, by Gon Coulibaly and Ichiro Kashitani, CEO of Toyota Tsusho, a unit of the automotive and industrial group.

The statement did not give details on the number or type of vehicles Toyota will produce in Ivory Coast, but it said the process for establishing the plant would be launched before the end of the year.

As part of its push into the continent, Toyota Tsusho acquired French automobile retailer CFAO, which operates in 35 countries in Africa, in 2016. Toyota already produces cars in South Africa, which has a well-developed auto industry.

VW and Nissan have also set up operations in Nigeria, Kenya and Ghana or have pledged to do so. Honda and Peugeot have launched assembly plants in Nigeria and Peugeot has done the same in Kenya.

 

- Reuters

Published in Engineering
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