Africa ’s biggest economy, Nigeria, has entered its second recession in five years as official figures published on Saturday show that the economy shrank again in the third quarter of this year .
The World Bank in June have warned that the collapse in oil prices and the COVID-19 pandemic could dip the Nigerian economy into the worst situation since the 1980s.
The NBS made the confirmation in a new report released today.
According to NBS, the economy shrank again in the third quarter, just like it did in the second quarter.
The nation’s economy posted a second consecutive negative growth, contracting by 3.62 per cent in the third quarter.
The cumulative Gross Domestic Product (GDP) for the first nine months of 2020, therefore, stood at -2.48 per cent.
It recorded a -6.10 per cent negative growth in the second quarter.
“Nigeria’s gross domestic product (GDP) recorded a growth rate of –3.62% (year-on-year) in real terms in the third quarter of 2020.
“Cumulatively, the economy has contracted by -2.48%. 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.
“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.”
In the three quarters of 2020, the economy only grew by 1.87 per cent in Q1.
The contraction in the second quarter was massive, at 6.1 per cent, caused by the domestic and global pandemic shutdown.
The Q2 contraction brought to an end the three-year trend of low but positive real growth rates recorded since the 2016/17 recession.