It is no news that Nigeria, Africa’s second largest economy, is currently going through economic recession but latest report by the Nigeria Bureau of Statistics, reveals that this is the worst the country have experienced in 29 years.
According to the NBS, the country’s Gross Domestic Product (GDP) contracted by 2.06% to record its lowest growth rate in three decades. This mean the GDP shrunk by 0.36%.
In the Second Quarter of 2016, the nation’s Gross Domestic Product (GDP) declined by -2.06% (year-onyear) in real terms,” the NBS revealed.
This was lower by 1.70% points from the growth rate of –0.36% recorded in the preceding quarter, and also lower by 4.41% points from the growth rate of 2.35% recorded in the corresponding quarter of 2015.
Quarter on quarter, real GDP increased by 0.82% During the quarter, nominal GDP was N23,483,954.78 million (in nominal terms) at basic prices. This was 2.73% higher than the Second Quarter 2015 value of N22,859,153.01 million. This growth was lower than the rate recorded in the Second Quarter of 2015 by 2.44% points.
According to World Bank data, the last time Nigeria had this magnitude of economic decline was under the regime of Ibrahim Babangida, when the economy recorded consecutive decline of 0.51 percent and 0.82 percent in first and second quarters of 1987.
The cause of the slump is believed largely to be as a result of the slump of oil prices on the world market. That situation has been worsened by renewed insurgency in the Niger Delta region, the attacks on oil installations continue to disrupt production of oil in the region.
Renowned political economist, Professor Pat Utomi had recently described the present recession being faced by Nigeria as a golden opportunity and not a problem.
According to Prof. Utomi, it is an opportunity for Nigeria to finally get her economy right by diversifying the economy and maximizing its wealth in agriculture.