Nigeria economy is close to growing out of the current recession. This positive news was contained in the Sales Managers Index (SMI) January data about the economy. (http://www.worldeconomics.com/SMI/Nigeria-SalesManagersIndex.efp). According to the information contained on the site, rate of market growth continues to improve to highest level in nine months; monthly sales pick up sharply and rate of price inflation remains substantial in January.

Market Growth Index

Source: SMI Nigeria

From the graph above, January data for the Nigeria Sales Managers’ Index (SMI), which measures growth across the country, reflects a continued change in fortunes with the Market Growth Index (48.7) improving steadily for the third consecutive month.

Sales Growth Index

Source: SMI Nigeria

Although, the economy remains in recession but managers are reporting renewed business confidence on the back of improving sales as represented by the Sales Growth Index in the graph above.

Prices Charged Index

Source: SMI Nigeria

Price inflation for January, which is tracked by the Prices Charged Index, remained very high at 62.0. Overall, conditions in Nigeria remain challenging but managers are expressing optimism that the country will pull out of its yearlong recession within the next few months.

It would be recalled that Nigeria’s economy technically slipped into recession last year. According to the information released by the Nigerians Bureau of Statistics, the Gross Domestic Product (GDP) declined by -2.06 per cent as at the second quarter 2016, annual inflation rose to 17.1 percent in July from 16.5 percent in June, and food inflation rose to 15.8 percent from 15.3. Nigeria, once revered as Africa’s top economy, has been battered by low oil prices hammering government revenues, weakening the national currency and driving up inflation to an 11-year high.

However, with this current improvement, Nigerians can only be optimistic that 2017 is going to be a lot better than the previous year. Note: (The SMI is a diffusion index; any index value above 50 indicates growth and below 50 indicates contraction.)