Nigeria’s economic recovery: Assessing the progress

Nigeria, once caught in the grips of an economic recession, is now beginning to see signs of recovery as the first half of 2017 draws to a close. Ayo Teriba, CEO of Economic Associates, sheds light on the country's economic progress and the role of oil in shaping its future. The turnaround in the economy from the worries of recession, devaluation, and soaring inflation in 2016 to a more positive outlook in 2017 can largely be attributed to the recovery of oil prices, which have almost doubled since November last year. While the increase in oil production has played a part, the primary driver of the economic upturn remains the surge in oil prices. However, as the economy continues to be closely tied to oil, the future remains uncertain and dependent on the trajectory of oil prices. Teriba emphasizes the need for Nigeria to diversify its economy and open up sectors to foreign investment to mitigate the risks associated with oil price fluctuations. He highlights the importance of long-term capital inflows in infrastructure projects as a way to stabilize the economy and attract sustainable investment. The challenges ahead lie in building investor confidence amidst the volatility of oil markets and ensuring proactive government policies to cushion the impact of any potential downturns in oil prices. With the global economy facing uncertainties, Nigeria's ability to adapt to changing market conditions and attract foreign investment will be crucial in sustaining its economic recovery in the long run.