Again, Nigerian economy officially dips into recession

  • Recession may linger through Q4, 2020 – LCCI
  • Despite recession, Nigeria’s economy fastest growing in Africa – UK envoy

Nigeria entered a second recession in the third quarter of this year, for the first time in five years, according to figures released by the National Bureau of Statistics (NBS) yesterday. 

The NBS, according to its third quarter (Q3) GDP report, said the country’s GDP in real terms declined by -3.62% year-on-year (YoY) in Q3, 2020, the second contraction in 2020, thereby marking a full-blown recession and second consecutive contraction from -6.10% recorded in the previous quarter (Q2, 2020). 

Picture caption: Finance Minister, Zainab Ahmed

According to the report, the performance of the economy in Q3 2020 reflected residual effects of the restrictions to movement and economic activity implemented across the country in early Q2 in response to the COVID-19 pandemic. 

Key sectors that contracted in Q3 2020 in the non-oil segment are manufacturing, trade (wholesale and retail) accommodation and food services, real estate among others. On the other hand, the growth non-oil sector was driven mainly by Information and Communication (Telecoms), with other drivers being Agriculture (Crop production), Construction, Financial and Insurance (Financial institutions).

The latest contraction in Nigeria’s GDP indicated the second recession in the country in the past 5 years. Recall that the Nigerian economy entered recession in Q2 2020 when GDP contracted by -2.06% for the second time in the year. 

Picture caption: LCCI D-G: Dr. Muda Yusuf

Meanwhile, Reacting to the NBS’s data, the Lagos Chamber of Commerce and Industry, (LCCI), has said the nation’s economic “recession could linger all through the fourth quarter of this year”. Its Director-General, Dr. Muda Yusuf, explained that the recent devastation caused by the #End SARS crisis could make the recession persist further. 

Notwithstanding the news of the recession, the United Kingdom (UK)’s Trade Envoy to Nigeria, Helen Grant, says the country is the fastest growing economy in Africa.

Grant stated this yesterday, during a two-day Nigerian Diaspora Investment Summit (NDIS), organised by Nigerian in Diaspora Commission (NiDCOM), in collaboration with Nigeria Diaspora Summit Initiative (NDSI). She emphasised that Nigeria was full of investment opportunities and potentials. 

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