Again, Nigeria's Economy Slips Into Recession Under Buhari-led Administration

Nigerian economy has slipped into further recession- NBS

Again, Nigeria’s Economy Slips Into Recession

The same happened in 2016, making it the second recession in a space of four years and the worst economic decline in nearly four decades.

"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", NBS said on Saturday.

'Yes, the economy has officially entered a recession but I see a quick V-shaped recovery as the effect of COVID'19 recedes and the impact of the interventions by the government and CBN begin to manifest including the implementation of the Economic Sustainability Plan.

Already in the second quarter, Nigeria's economy contracted by six%.

The oil sector contracted by 13.89 percent in the third quarter against growth of 6.49 percent in the same period a year earlier, according to data cited by Kale, while non-oil sectors shrank by 2.51 percent in the three months to September.

According to the NBS, this recession is the worst since 1987 as the Gross Domestic Product in real terms declined by -3.62% (year-on-year) in the third quarter of 2020 and is driven by the long closure of the Nigerian borders which restricted economic movements across the borders.

The NBS stated that the cumulative GDP for the first nine months of 2020 stood at -2.48 per cent.

This online news platform understands that the development shows that this is the second consecutive quarterly GDP decline since Nigeria's 2016 recession.

'The performance of the economy in Q3 2020 reflected residual effects of the restrictions to movement and economic activity implemented across the country in early Q2 in response to the COVID-19 pandemic.

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.

However, growth has been fragile and COVID-19 has hit the economy hard, amid low oil prices.

The continent's top oil producer and exporter relies on crude sales for 90 percent of foreign exchange earnings. "52billion or 31% of the prorated amount that is supposed to have been realized by the end of that first quarter".

Reacting to the negative growth, Uwaleke said that even though Nigeria has plunged into a recession with another negative growth in the Q3 GDP, the latest result was better than the Q2 result.

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