For The Second Time Under Buhari’s Current Administration, Nigeria’s Economy Slips Into Recession

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For the second time under President Muhammadu Buhari’s current administration, the Nigerian economy has slipped into recession according to the National Bureau of Statistics (NBS), the country’s official data agency.

NBS said the economy slipped into recession at the end of the third quarter (Q3) which ended in September.

It would be recalled that Nigeria’s economy went into a recession in 2016 following a lull in economic activities as a result of the delay in the appointment of ministers and other key appointees upon takeover of the reins of government in 2015 by the Nigerian leader.

The NBS also revealed that 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.

NBS on Saturday, said “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”.

“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.

“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.

“As these restrictions were lifted, businesses re-opened and international travel and trading activities resumed, some economic activities have returned to positive growth. A total of 18 economic activities recorded positive growth in Q3 2020, compared to 13 activities in Q2 2020,” it explained further.

The report also revealed that during the quarter under review, aggregate GDP stood at N39,089,460.61 million in nominal terms, adding that the performance was 3.39% higher when compared to the third quarter of 2019 which recorded an aggregate of N37,806,924.41 million.

“This rate was, however, lower relative to growth recorded in the third quarter of 2019 by –9.91% points but higher than the proceeding quarter by 6.19% points.

“For clarity, the Nigerian economy has been broadly classified into the oil and non-oil sectors:The contract mark the beginning of a full-blown recession and second consecutive contraction from -6.10 per cent recorded in the previous quarter of this year.”

 

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