Nigeria exits recession with 0.11% growth

Nigeria’s economy grew by 0.11 percent in the fourth quarter of 2020. This comes after the country experienced two consecutive quarters of negative growth which resulted in a recession.

According to a report by the National bureau of statistics: “Nigeria’s gross domestic product (GDP) grew by 0.11 percent (year-on-year) in real terms in the fourth quarter of 2020, representing the first positive quarterly growth in the last three quarters,”

“Though weak, the positive growth reflects the gradual return of economic activities following the easing of restricted movements and limited local and international commercial activities in the preceding quarters.

“As a result, while the Q4 2020 growth rate was lower than growth rate recorded the previous year by –2.44 percentage points, it was higher by 3.74 percentage points compared to the third quarter of 2020.

“On a quarter on quarter basis, real GDP growth was 9.68 percent indicating a second positive consecutive quarter on quarter real growth rate in 2020 after two negative quarters.

“Overall, in 2020, the annual growth of real GDP was estimated at –1.92 percent, a decline of –4.20 percentage points when compared to the 2.27 percent recorded in 2019.”

Read also: Nigeria will be out of recession soon – FG

In the fourth quarter of 2020, Nigeria recorded an average daily oil production of 1.56 million barrels per day (mbpd) which was 0.11mbpd lower than the rate recorded in the third quarter.

On an annual basis, the oil sector was recorded to have grown by -19.76%.
In 2019, the oil sector recorded growth of 4.59% however, in 2020 it recorded growth of -8.89%.
In the fourth quarter of 2020, the oil sector contributed 5.87% to the real GDP.

The non-oil sector
On the other hand, the non-oil sector grew by 1.69% in the fourth quarter of 2020 which was slower than the 2.26% recorded in fourth quarter of 2019. The result was better than the -2.51% growth recorded in the third quarter of 2020.
On an annual perspective, the non-oil sector grew by -1.25% in contrast to the 2.06% in 2019.

Overall, in the fourth quarter of 2020, the non-oil sector contributed 94.13% to the nation’s GDP which was higher than the growth rate recorded in the third quarter of 2019 and the fourth quarter of 2019.