Nigeria’s economic recession deepens as GDP contracts 2.24 per cent in third quarter

Naira notes
Naira notes

The Nigerian economy plunged deeper into recession as gross domestic product (GDP) contracted 2.24 per cent (year-on-year) in real terms in the third quarter of 2016, from 2.06 per cent from the previous quarter.

Real GDP for the third quarter stood at about N1.78 trillion, the National Bureau of Statistics (NBS) said in its latest GDP Report published on Monday in Abuja.

The contraction of the economy in the third quarter was lower by 0.18 per cent points from the preceding quarter, according to the report.

The agency said the figure was also lower by 5.08 per cent points from the growth recorded in the corresponding quarter of 2015.

Details of the report showed that aggregate GDP, in nominal terms at basic prices, stood at about N26.6 trillion, against the N24.3 trillion in the third quarter of 2015.

“During the quarter, aggregate GDP stood at N26.6 trillion (in nominal terms) at basic prices, compared to the third quarter 2015 value of N24.3 trillion. Nominal GDP grew by 9.23 per cent. This growth was higher relative to growth recorded in the third quarter of 2015 by 3.22 per cent points,” the report said.

A review of the sectoral performance of the report showed that during the period, the Nigerian National Petroleum Corporation (NNPC) said the country’s oil production capacity averaged about 1.63 million barrels per day (mbpd), lower from the figures in the second quarter of 2016.

Consequently, the report said the real growth of the oil sector slowed by 22.01 per cent (year-on-year) in third quarter of 2016, representing a decline relative to growth recorded in same quarter of 2015 at 1.06 per cent.

As a share of the economy, the oil sector accounted for about 8.19 per cent of total real GDP, down from figures recorded in the corresponding period of 2015 and the preceding quarter of 2016 recorded at 10.27 per cent and 8.26 per cent respectively.

The growth in the non-oil sector, the report pointed out, was largely driven by the activities of agriculture (crop production), information and communication and other services.

The report said the 0.03 per cent growth in the non-oil sector in real terms in the third quarter of 2016, reversed the negative growth recorded in the first and second quarters of the year.

Sectoral contributions to the GDP during the quarter showed the agricultural sector accounted for 28.66 per cent; industries, 21.1 per cent and services, 50.2 per cent.


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  • Rommel

    Even countries that manufacture goods enter recession not to talk of the one that produces nothing which incidentally has very high appetite for imported finished goods,Nigerians are the problem with Nigeria.

    • emmanuel

      Nigeria inflation is over 105% against 18% given by the FBS. When Countries goes into recession, they put policies in place to get out of it.
      In Nigeria’s case, we go to the press to say how drop in price of Rice which is still galloping up wiil stop recession.
      Who does not know that we are in depression already?
      Unfortunately, We deploy more monies to prospect Oil in Chad Basin while we are meant to develop alternative source of FOERX eaners.
      The other day we sang uhuru that Nickels will give us more money than Crude, only to discover the Nickel find was insignificant.
      We have gone to import Grass from Brazil for Nama to eat, yet Buhari is insisting cattle grazing must continue.
      So what will bring you out of the current depression?
      Please note that emotional analysis of how nations got out of depression will not get you out!

      • Rommel

        The nickel find is not insignificant,it takes time to develop the fields and it’s yield is highly priced,even gold is found in commercial quantities in places like Zamfara, when that sector begins to earn income,someday in the future,the indigenes will not believe how the mines were developed just like the Niger delta of today and from the way you are speaking,seems you are pained that effort is being made to discover wealth elsewhere,are you jealous?

  • JasV

    This writer is either ignorant, or mischievous or both. I want to know the performance of this quarter compared to the last quarter and not this emphasis on this quarter against the same period last year.

  • emmanuel

    When did the growth come from? That you released paltry sum of monies to contractor early in November did could not have led to GDP growth in October.
    Abi na which month come before the other? This is the poor job of brainless propagandists!
    Even nations with vibrant economic activities hardly have 2.2% GDP growth, how much more for a dead economy. Kemi hardly understands Arithmetic, so she just attches numbers to reports and read to the press.
    This is the best brain the Yorubas could afford after Ola Vincent and Joseph Sanusi in Economics and Finance.

  • emmanuel

    If Rice sold for N7,500.00 this time last year and now sell for N21,000.00, it mens that inflation is about 110%. comparatively, if 20 bags were produced then and only 9 bags produced now, what shoul that tell the FBS?