With ongoing debate as to how Nigeria can overcome its economic recession, Nigeria’s economy has yet again contracted in the third quarter of 2016, according to official data from the National Bureau of Statistics (NBS).
The recent report released said “the nation’s gross domestic product (GDP) contracted by -2.24% year-on-year,”
According to NBS, the contraction comes on the heels of businesses struggling to access foreign exchange and continuing activities of rebels bombing oil pipelines in the south-south part of the country.
“In the third quarter of 2016, the nation’s Gross Domestic Product (GDP) contracted by -2.24% (year-on-year) in real terms. This was lower by 0.18% points from growth recorded in the preceding quarter and also lower by 5.08% points from growth recorded in the corresponding quarter of 2015. Quarter on quarter (unadjusted for seasonality), real GDP increased by 8.99%.
“During the quarter, aggregate GDP stood at N26, 558,952.83 million (in nominal terms) at basic prices. Compared to the third quarter 2015 value of N24, 313, 636.94 million.
Nominal GDP grew by 9.23%. This growth was higher relative to growth recorded in the third quarter of 2015 by 3.22% points, the report stated.
In its review of the sectoral performance for 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.
As a result, 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.
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.
Growth in the non-oil sector, 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.
Other sectors contributions to the GDP during the quarter showed that Agricultural accounted for 28.66 per cent; industries, 21.1 per cent and services, 50.2 per cent, the report said.