Nigeria’s economy shrinks by 6.1% in Q2 2020

OBINNA EZUGWU

Nigeria’s economy declined by 6.1 percent in the second quarter of 2020 according to a report by the National Bureau of Statistics (NBS).

The report which was released on Monday, said Oil GDP contracted by -6.63 percent from 5.06 percent in the first quarter and 5.15 percent in the second of 2019.

Non-oil GDP was also reported to have contracted by 6.05 percent from 1.55 percent in the first quarter of 2020 and 1.64 percent in the second quarter of 2019.

“Gross Domestic Product decreased by –6.10 per cent (year-on-year) in real terms in the second quarter of 2020, ending the three-year trend of low but positive real growth rates recorded since the 2016/17 recession,” the NBS said.

The report said when compared with Q2 2019, which recorded a growth of 2.12 per cent, the Q2 2020 growth rate indicated a drop of 8.22 per cent, and a fall of 7.97 per cent when compared to the first quarter of 2020 (1.87 per cent).

“Consequently, for the first half of 2020, real GDP declined by –2.18 per cent year on year, compared with 2.11 per cent recorded in the first half of 2019. Quarter on quarter, real GDP decreased by –5.04 per cent. Furthermore, only 13 activities recorded positive real growth compared to 30 in the preceding quarter,” it added.

The Nigerian economy had emerged from its first recession in 25 years in the second quarter of 2017 when it posted a 0.7 per cent growt. With another negative growth rate likely in Q3 2020, the economy will slide into its second recession in four years.