Economy

Nigeria’s Economy Continues To Contract

By Adenike Lucas 

Nigeria’s economy continued to shrink in the third quarter, contracting by 2.24 percent year-on-year in the three months through September.

Figures showed that the Gross Domestic Product, GDP of Africa’s most populous country fell by 2.24 percent in the third quarter of 2016, following a 2.06 percent contraction in the second quarter, and a 0.36 percent shrinking in the first quarter.

Today’s statistic is not good news as it shows that the recession has deepened. It is seen as the worst recession in the West-African country in over 20 years. 15 Economist polled by Bloomberg had predicted only a 2 percent contraction.

According to a new set of data released early today (Nov 21) by the National Bureau of Statistics, oil production fell to 1.63 million barrels per day, down from 1.69 million in the second quarter.

Over the past 2 years, oil price has slumped from more than $100 a barrel to roughly $48 now.

The slump in crude prices led Africa’s biggest economy to shrink by 2.06 percent in the second quarter.

Nigeria depends on the income it generates from Oil and Gas. Oil bunkering caused by militants is seen as one of the reason for the slow growth in the country’s economy.

President Muhammadu Buhari has appealed to Niger Delta militants to embrace peace and stop bombing pipelines.

Data shows a growth in the Non-oil sector largely driven by the activities of Agriculture (Crop Production) grew by 0.03 percent in the third quarter, compared with negative growth in the first two, it said.

Production fell in manufacturing and construction.

To read the full report by the NBS CLICK –  HERE

 

 

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Categories: Economy

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