Nigerian economy officially slides into recession

Nigerian economy officially slides into recession

Minister of Finance, Kemi Adeosun, had said Nigeria was not under recession, rather the economy was “Technically under recession.”

The whole world saw right through her statistics and the ones coming out of Aso Rock.

They would have just come out and say the economy was in recession and needed to be fixed.

We all already knew this. The rest of the world knows it.

All Nigerians demands is for the Government to be true to themselves for once.

Well, the Bureau of statistics finally let the cat out of the bag: Nigeria is in recession for the first time in more than 20 years.

According to the Nigerian Bureau of Statistics (NBS), Gross Domestic Product (GDP) shrank by 2.06%.

This was after it shrank by 0.36% in the first quarter.

Here is a summary of the 27 page document to wit:

  1. Oil production was estimated at 1.69million barrels per day (mbpd), which is 0.42 million mbpd lower from production in First Quarter of 2016.
  2. The non-oil sector accordingly, declined by 0.38% in real terms.
  3. Non-Oil sector contributed 91.74% to the nation’s GDP, higher from shares recorded in the First Quarter of 2016 (89.71%) and the Second Quarter of 2015 (90.20%).
  4. Agriculture is made up of four sub-activities, namely: Crop Production; Livestock; Forestry; and Fishing. In nominal terms, the sector grew by 13.24% year-on-year.
  5. Nominal GDP growth in Manufacturing in the Second Quarter of 2016 was recorded at negative 1.02% (year-on-year).
  6. Year on year, Trade grew by 15.23% in the Second Quarter of 2016 in nominal terms.
  7. Telecoms sector shrank by 6.66% (year-on-year) in the Second Quarter of 2016, which was 18.30% points below the growth rate of 11.64% recorded in the same quarter of 2015, and 15.35% points lower than that recorded in the preceding quarter.
  8. Education year-on-year stood at 2.88% in Q2 2016. In plain words, education shrank by 4.38% points from the corresponding quarter of 2015 which was estimated at 7.27% .

You can read the full document here.