Nigeria’s Gross Domestic Product (GDP) shrunk steadily by 2.24 per cent for three consecutive quarters of 2016, the National Bureau of Statistics (NBS) said on Monday.
According to data released by the statistics office, which contradicts projections of both monetary and fiscal authorities in the country, the fall was due to the current economic hardship plaguing the nation, which has led to recession.
The report stated that Nigeria’s third quarter 2016 (Q3’16) real GDP shrunk by 2.24 per cent year-on-year (YoY), relative to a shrinking by 2.06 per cent and 0.36 per cent YoY recorded in the second quarter and first quarter 2016 respectively.
With oil production at 1.63 million barrels per day (mbpd) in Q3’16 compared to 2.17mbpd in Q3’15, oil sector real GDP contracted further by 22.01 per cent YoY (Q2’16: -17.48% YoY and Q3’15: +1.06% YoY).
The non-oil sector however grew, albeit marginally, by 0.03 per cent YoY (Q2’16: -0.38% YoY and Q3’15: +3.05% YoY) reversing the previous two consecutive quarters of negative growth.
Agriculture sector grew by 4.54 per cent YoY (Q2’16: 4.53% YoY and Q3’15: +3.46% YoY), the Manufacturing sector recorded further contraction, falling by 4.38 per cent YoY (Q2’16: -3.36% YoY and Q3’15: -1.75% YoY). This was due to the substantial contraction in the Food and Beverage (45% of total manufacturing output) and Cement (9.1% of total manufacturing output) sub-sectors.
Nigeria’s economy officially entered recession after the second quarter 2016 largely to negative growth, in August.
Governor of Central Bank of Nigeria, CBN, Godwin Emefiele, and Minister of Finance, Mrs Kemi Adeosun, had projected that the economy would begin the process of recovery in the third quarter of this year adding that growth would resume in 2017.