UPDATE 3-Nigeria posts highest quarterly GDP growth in Q4 since recession

(Adds analyst quote)
By Chijioke Ohuocha
ABUJA, Feb 24 (Reuters) - Nigeria's economic growth rose to
an annual rate of 2.55% in the three months to the end of
December, its highest quarterly growth since a 2016 recession,
the statistics office said on Monday.
Africa's largest economy grew 2.27% in 2019 from 1.91% the
previous year. The country has struggled to shake off the
effects of a 2016 recession that ended the following year, and
has been grappling with low growth since.
Growth in 2019 was supported by a favourable oil price and
higher crude production. The oil sector, which accounts for
around two-thirds of government revenue and 90% of foreign
exchange, grew 6.36% in Q4.
Crude production hovered at around 2 million barrels per day
throughout the year, the statistics office said.
The non-oil sector, which the government is trying to make
the main growth sector, rose 2.26% in Q4.
President Muhammadu Buhari, who began a second four-year
term in May, has pledged to revive the economy and diversify it
away from over-dependence on oil. But investors have been
waiting for policy signals that could lift growth.
"Today's figures still doesn't show any sign that President
Buhari is succeeding in rebalancing Nigeria's economy," said
John Ashbourne, Africa economist at Capital Economics.
"The pickup in growth was caused by an easing in the
contraction of wholesale and retail trade and a boom in the
banking sector."
Last week the IMF cut its 2020 growth forecast for Nigeria
to 2% from 2.5%, citing lower demand for oil due to fears that
the coronavirus outbreak in China will cause a
slowdown. The Fund said Nigeria was still recovering, but inflation
was rising which, along with external shocks, would weaken its
foreign exchange reserves due to its deteriorating terms of
trade and capital outflows.
Annual inflation in Nigeria rose for the fifth straight
month to 12.13% in January, its highest in nearly two
years.