Trade Nigeria: We are Encouraging the growth of Nigeria.

 

 

Trade Nigeria is showcasing and growing the Nigreian through her numerous trade/business programmes across continents.

The Organization is actually designed to promote, protect and develop platforms and programmes that will help local business thrives beyond Nigeria as well as contribute ideas that will not only enhance the overall economic stability of Nigeria, but also encourage both national and international interests in local businesses in the country.

Nigeria’s economic performance in 2021 has been positive so far as the economy reopens for business after last year’s lockdown, which caused the worst recession recorded in 33 years.

According to the recently published GDP report released by the National Bureau of Statistics (NBS), Nigeria’s Gross Domestic Product (GDP) grew by 5.01% (year-on-year) in real terms in the second quarter of 2021, marking three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020.

Year to date, real GDP grew 2.7% in 2021 compared to -2.18% for the first half of 2020. However, quarter on quarter, real GDP contracted at 0.79% in Q2 2021 compared to Q1 2021, reflecting slightly slower economic activity than the preceding quarter largely due to the seasonality effect.

Nigeria’s Service Sector which makes up about 55.6% of GDP was the major reason for the growth, as the Trade Sector was the major driver of growth contributing about 64% to Nigeria’s growth rate. The Trade Sector which currently contributes about 16.66% of GDP rose by a whopping 22% in the second quarter of 2021, it’s fastest since at least 2016.

Despite the economic growth, which also is the fastest quarterly economic growth in over 5 years, Chief Executive Officer of Financial Derivatives Company Ltd, Mr Bismarck Rewane warned that Nigeria’s positive Gross Domestic Product has yet to have a significant impact on socio-economic conditions.

Still, the GDP growth can be seen as the economy “healing” from a string of bad policies over the last few years that adversely affected the ease of doing business and investor confidence in Nigeria, such as the border closure, which was a major driver of food inflation and stifled cross-border trade between Nigeria and its other West African neighbours..

In particular, the closure (which the government has since jettisoned) affected Nigeria’s relations with Ghana, as Ghana’s Foreign Minister, Shirley Ayorkor Botchwey, said last year that Nigeria’s border closure in 2019 hurt Ghanaians and nearly bankrupted many Ghanaian export businesses after their goods were stuck at the Seme Border for months.

In a separate statement, the Ghanaian government said it imposed the $1 million levy on traders in the country, including Nigerians, due to certain steps that were taken by the Nigerian government including the border closure.