Nigeria enters second recession in five years

President Muhammadu Buhari

The official figures published on Saturday show that the Nigeria economy has shrunken again in the third quarter of this year.

In essence, Nigeria, African’s biggest economy has entered her second recession in five years.

This year’s recession, ocassioned by the economic fallout of the COVID-19 pandemic, is worse than that of 2016.

According to the National Bureau of Statistics, in its Gross Domestic Product report for Q3; the GDP, the broadest measure of economic prosperity, fell by 3.62 in the three months to September.

Economists consider two consecutive quarters of shrinking GDP as the technical definition of a recession.

For the first time in more than three years, the Nigerian economy shrank in the second quarter of this year as the GDP fell by 6.10 per cent, compared with a growth of 1.87 per cent in Q1.

The NBS had said in August 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.

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