Nigeria’s Gross Domestic Product, GDP, has further falls to 2.24% in the third quarter of 2016, worsening the nation’s economic recession.
A set of new data released by the National Bureau of Statistics, NBS, on Monday, reveals that Africa’s largest economy shrunk by 2.06% in the third quarter as the country is hit by massive revenue shortage, foreign exchange shortage and volatile naria-dollar parity.
Monday’s data shows Nigeria’s oil sector falls 22.01% in the third quarter ended September, while non-oil sector grew a paltry 0.03%.
Oil sector contribution to GDP was seen at 8.19% and non-oil sector contribution to GDP was higher at 91.81%.
During the period under review, Nigeria’s Aggregate Gross Domestic Product in nominal terms was recorded at 26.558 billion naira, or a 9.23% growth.
It was a similar case earlier in the second quarter of the year. Nigeria’s Gross Domestic Product (GDP) had contracted by 2.06% in the second quarter of 2016.
According to the NBS report, the decline caused the Naira to get weaker while lower oil prices dragged the oil sector down with output shrinking by 0.36 in the first quarter.
During the quarter, nominal GDP was 2.73% higher at 23.48 million Naira at basic prices.
NSB in August officially announced that Nigeria, was going through her worst economic recession ever 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 – meaning that the GDP shrunk by 0.36%.
The shrunk was linked to the slump in oil prices on the world market – a situation which has been worsened for Nigeria by renewed insurgency in the Niger Delta region, the attacks on oil installations continues to disrupt production of oil in the region.
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.