Nigeria's Economy plunges into recession 2nd time in 5years

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The Nigeria's economy has officially plunges into recession, for the second time in 5 years, as the country’s GDP in real terms declined by -3.62% YoY in Q3 2020, the second contraction in 2020.

Nigeria’s Gross Domestic Product (GDP) in real terms declined by -3.62% (year-on-year) in Q3 2020, thereby marking a full-blown recession and second consecutive contraction from -6.10% recorded in the previous quarter (Q2 2020).

This is according to the third quarter (Q3) GDP report, released by the National Bureau of Statistics (NBS) on Saturday.

According to the report, 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.

In Q3 2020, the oil sector contracted by –13.89% (year-on-year), indicating a sharp contraction of –20.38% points relative to the rate recorded in the corresponding quarter of 2019. Furthermore, oil sector decreased by –7.26% points when compared with growth recorded in Q2 2020 (6.63%).

The sector contributed 8.73% to total real GDP in Q3 2020, down from 9.77% and 8.93% respectively recorded in the corresponding period of 2019 and the preceding quarter, Q2 2020.

The average daily oil production recorded in the third quarter of 2020 stood at 1.67 million barrels per day (mbpd), or 0.37mbpd lower than the average production recorded in the same quarter of 2019 and 0.14mbpd lower than production volume recorded in the second quarter of 2020 (1.81mbpd).

The Nigeria’s non-oil sector contracted for the second time as the economy continues to reflect the impacts of Covid’19 pandemic. In Q3 2020, the non-oil sector grew by –2.51% in real terms during the reference quarter, which is –4.36% points lower than the rate recorded in Q3 2019 but 3.54% points higher than in the second quarter of 2020.