STAKEHOLDERS in the Nigerian economy have argued that increase in crude oil price is panacea for economic recovery. Nigerian economy officially entered into recession third quarter of 2016 and various efforts have been put in place to ensure the country is out of recession.
Speaking during the KPMG Alumni Cocktail 2017, the Managing Director/Chief Executive Officer (CEO), First Bank of Nigeria Ltd and Subsidiaries, Dr. Adesola Adeduntan, FCA, a recovery in global oil prices, following OPEC’s agreement with non-OPEC members to stich up supply and improved oil production and export numbers on the back of the pacification of a resurgent militancy in the oil rich Niger Delta region have both pushed export earnings up.
He said this has resulted into increase in two output components, net export growth and increase in government spending.
He noted that for any reform to succeed in the Nigerian economy which is largely dependent on crude oil proceeds, the oil and gas sector should be the first point of call.