World Bank’s data: Nigeria suffers worst economic recession in 36 years

World Bank President

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

The data obtained from the World Bank showed that the country’s GDP dropped by 10.92 per cent in 1983 and 1.2 per cent in 1984, in essence this year’s recession is worst in 36 years.

The World Bank said in June that the collapse in crude oil prices, coupled with the COVID-19 pandemic was expected to “plunge the Nigerian economy into a severe recession, the worst since the 1980s”.

The NBS, in its Gross Domestic Product report for Q3, said the GDP, the broadest measure of economic prosperity, fell by 3.62 per cent in the three months up till September.

For the first time in more than three years, the Nigerian economy shrank in Q2 as the GDP fell by 6.10 per cent, compared with a growth of 1.87 per cent in Q1.

Economists consider two consecutive quarters of shrinking GDP as the technical definition of a 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,” the NBS said.

It said as the restrictions were lifted, businesses reopened and international travel and trading activities resumed, some economic activities had returned to positive growth.

“A total of 18 economic activities recorded positive growth in Q3 2020, compared to 13 activities in Q2 2020,” it added.

The statistics office said aggregate GDP stood at N39.09tn in nominal terms and N17.82tn in real terms in the period under review.

It said the average daily oil production recorded in Q3 dropped to 1.67 million barrels per day from 2.04 million bpd in the same quarter of 2019 and 1.81 million bpd in Q2 2020.

The oil sector contributed 8.73 per cent to total real GDP in Q3, down from 9.77 per cent and 8.93 per cent respectively recorded in Q3 2019 and Q2 2020.

The contribution of the non-oil sector to the GDP, however, increased to 91.27 in Q3 from 90.23 per cent in Q3 2019 and 91.07 per cent in Q2 2020.

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