Nigeria economy grows 10,2%

LAGOS – Nigeria’s economy grew at a record rate of 10,2 per cent in 2003, driven by the oil sector, versus 3,5 per cent growth the previous year, the central bank said on Thursday.

Private-sector economists questioned the accuracy of the figure. “The real gross domestic product (GDP), measured at 1990 constant prices, grew by an impressive 10,2 per cent, compared to the 3,5 per cent achieved in 2002,” Joseph Sanusi, the central bank governor, said at an economic forum in Lagos.Bismark Rewane, head of consultants Financial Derivatives Co., said the figure was “startling”.”I consider the figure to be highly optimistic.I would take it with a note of caution,” he said.At this time last year, the central bank said the economy grew by 3,3 per cent in 2002, while the International Monetary Fund said it contracted by 0,9 per cent.Sanusi said the government of the world’s seventh-largest oil exporter had targeted 5 per cent growth for 2003.The governor said oil production, including condensates, grew by 23,9 per cent over the year-ago level, while aggregate non-oil output rose by 4,5 per cent.He did not provide data on oil production.Sanusi, who is due to step down at the end of the month, said Nigeria’s overall balance of payments deficit narrowed to US$1,3 billion in 2003, or 2,2 per cent of gross domestic product, from US$4,7 billion previously because of an easing of the pressure on the country’s external sector.Sanusi said the challenge of maintaining economic stability in 2004 was “daunting, given the continued liquidity overhang in the banking system and the risk of excessive injection of liquidity into the system.”-Nampa-Reuters”The real gross domestic product (GDP), measured at 1990 constant prices, grew by an impressive 10,2 per cent, compared to the 3,5 per cent achieved in 2002,” Joseph Sanusi, the central bank governor, said at an economic forum in Lagos.Bismark Rewane, head of consultants Financial Derivatives Co., said the figure was “startling”.”I consider the figure to be highly optimistic.I would take it with a note of caution,” he said.At this time last year, the central bank said the economy grew by 3,3 per cent in 2002, while the International Monetary Fund said it contracted by 0,9 per cent.Sanusi said the government of the world’s seventh-largest oil exporter had targeted 5 per cent growth for 2003.The governor said oil production, including condensates, grew by 23,9 per cent over the year-ago level, while aggregate non-oil output rose by 4,5 per cent.He did not provide data on oil production.Sanusi, who is due to step down at the end of the month, said Nigeria’s overall balance of payments deficit narrowed to US$1,3 billion in 2003, or 2,2 per cent of gross domestic product, from US$4,7 billion previously because of an easing of the pressure on the country’s external sector.Sanusi said the challenge of maintaining economic stability in 2004 was “daunting, given the continued liquidity overhang in the banking system and the risk of excessive injection of liquidity into the system.”-Nampa-Reuters