The Nigerian economy is headed for bleak times as the Nigeria Bureau of Statistics (NBS) on Saturday, November 21, officially confirmed Nigeria had slipped into a recession.
The same happened in 2016; making it the second recession in a space of four years.
1st News analysed official figures published by the NBS; which depicted the economy shrank again in the third quarter of this year.
The nation’s economy maintained a second consecutive negative growth; after contracting by 3.62 per cent in the third quarter.
The cumulative Gross Domestic Product (GDP) for the first nine months of 2020; therefore, stood at -2.48 per cent just as it recorded a -6.10 per cent in the second quarter.
“Nigeria’s gross domestic product (GDP) recorded a growth rate of –3.62% (year-on-year) in real terms in the third quarter of 2020,” the NBS report partly read.
“Cumulatively, the economy has contracted by -2.48%.While this represents an improvement of 2.48% points over the –6.10% growth rate recorded in the preceding quarter (Q2 2020); it also indicates that two consecutive quarters of negative growth have been recorded in 2020.
“Furthermore, growth in Q3 2020 was slower by 5.90% points when compared to the third quarter of 2019 which recorded a real growth rate of 2.28% year on year.”
— NBS Nigeria (@nigerianstat) November 21, 2020
For the first time in more than three years, the Nigerian economy shrank in the second quarter of 2020 as the GDP fell by 6.10 per cent; compared with a growth of 1.87 per cent in Q1.
In August, the NBS said that the economic decline in Q2 was largely attributable to significantly lower levels; of both domestic and international economic activity resulting from nationwide shutdown efforts; aimed at containing the COVID-19 pandemic.
It said the contraction in Q2 brought to an end the three-year trend of low but positive real growth rates recorded since the 2016/17 recession.
In May, Finance Minister, Zainab Ahmed, had predicted that the coronavirus pandemic; and falling oil prices were set to force the economy into negative growth.
“COVID-19 has resulted in the collapse in oil prices,” she said.
“This will impact negatively; and the impact has already started showing on the federation’s revenues; and on the foreign exchange earnings.”