Peace in agrarian states will boost GDP – Economist

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Mr Johnson Chukwu, has urged the Federal Government to sustain peace in agrarian states to boost the contribution of agriculture to the nation’s Gross Domestic Product (GDP), in the next quarter.

Chukwu, who is also the Chief Executive Officer, Cowry Asset Management, an Investment Firm, said this in an interview with the Newsmen in Lagos.

The economist, however, said for the agricultural sector to contribute to the growth of GDP, the Federal Government must sustain the relative peace in the agrarian states.

The National Bureau of Statistics (NBS) had on Monday said Nigeria’s GDP grew by 1.50 per cent year-on-year in real terms to N16.58 trillion in the second quarter.

According to NBS, the figure is 0.79 per cent points higher compared to the 0.72 per cent recorded in the second quarter of 2017.

It stated that the figure was about –0.45 per cent points lower than 1.95 per cent recorded in the first quarter of 2018.

The NBS also said the real GDP growth on a quarter-on-quarter basis was 2.94 per cent while the aggregate GDP stood at N30.69 trillion in nominal terms, in the period under review.

Chukwu, however, said peace was needed to enable the agricultural sector to contribute to the economic growth.

He said this became imperative in view of the oil output reduced in the second quarter.

“In the second quarter the oil output production is about 1.6 million barrel, far short from the projected figure of over two million barrels.

“The short fall is primarily caused by ruptures in some of the oil pipes in the Niger Delta regions,” he said.

The economist said permanent peace was needed, especially in the middle belt states and North-East, to enable the agricultural sector contribute to the growth of the economy.

“Even the issues of flood should be taken care of by the government through enlightenment campaign, so as to allow for better harvest in the next quarter,” he said.

The economist urged the Federal Government to increase budgetary allocations on