The National Bureau of Statistics has reported that Nigeria’s real GDP contracted by as much as 2.24% in the third quarter of 2016 higher than the 2.04% contraction in the second of 2016. This sadly confirms that Nigeria is still neck-deep in a recession.
According to the bureau, the oil sector which constitutes about 8.19% of the economy contracted by as much as -22% compared to -17.48% in the second quarter of 2016. According to the data, Oil production according to NNPC, averaged at 1.63million barrels per day (mbpd), lower from production in second quarter of 2016. Oil production was also lower relative to the corresponding quarter in 2015 by 0.54million barrels per day when output was recorded at 2.17mbpd. This was suggested as the major cause of the huge contraction in the sector.
Non Oil GDP
According to the Bureau, growth in the Non-oil sector was largely driven by the activities of Agriculture (Crop Production), Information & Communication and Other Services. The non-oil sector grew by 0.03% in real terms in the third quarter of 2016, reversing the last 2 quarters of negative growth recorded in Q1 and Q2 2016. This was 0.41% points higher from the second quarter of 2016, yet 3.03% points lower from the corresponding quarter in 2015 . In real terms, the Non -Oil sector contributed 91.81% to the nation’s GDP, higher from shares recorded in the second quarter of 2016 (91.74%) and the third quarter of 2015.
Other critical sectors of the economy such as manufacturing, construction trade all recorded negative GDP growth rates. For example, Manufacturing contracted by -4.38% in the third quarter compared to -3.36% in the previous quarter. Construction contracted by 6.13% compared to 6.28% quarter on quarter while trade contracted by -1.38% compared to -0.03%.
Get the report below