Nigeria’s economic growth seen picking up in Q3

The Nigerian economy is expected to expand at a faster pace in the third quarter of this year than in Q2 thanks to the oil sector.

“We think that data next week will show Nigeria’s GDP growth picked up in Q3, to 3.0 percent y/y,” Capital Economics said in a new note.

The National Bureau of Statistics will releaase the GDP report for Q3 next Friday.

The economy expanded by 2.5 percent y/y in Q2, an improvement on previous quarter, as the impact of botched demonetisation faded, although lower oil output offset some of this, the London-based firm said.

It said, “Since then the oil sector has seen continued increases in production, coinciding with high oil prices. In contrast, business and consumer survey indicators remain weak, as real incomes continue to suffer from the weak naira pushing up inflation.

“Taken together, we think these point to slightly stronger growth in Q3. But the travails of the naira and high inflation are likely to continue to prevent growth from reaching ambitious government targets.”