The Nigerian economy has slipped into its second recession in five years after the gross domestic product contracted the second consecutive quarter.
This is the nation’s second recession since 2016, and the worst economic decline in almost four decades.
The National Bureau of Statistics (NBS), on Saturday announced that the Gross Domestic Product (GDP) of Africa’s most populous country has now contracted by -2.48%.
The NBS said the GDP recorded a growth rate of –3.62% year-on-year in real terms in the third quarter of 2020.
The country had earlier recorded a 6.10 per cent contraction in the second quarter.
According to the report released by the NBS, there is a significant decline in oil revenues, a development which crippled economic activities.
“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,” the report said.
“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 NBS noted that 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,” the report said.