Nigeria has slipped into recession, with the latest growth figures showing the economy contracted by 2.06% between April and June.


The country has now seen two consecutive quarters of declining growth, the usual definition of recession.
Its vital oil industry has been hit by weaker global prices, according to the Nigerian Bureau of Statistics (NBS).

Crude oil sales account for 70% of government income.
The price of oil has fallen from highs of about $112 a barrel in 2014 to below $50 at the moment.

Outside the oil industry, the figures show the fall in the Nigerian currency, the naira, has hurt the economy. It was allowed to float freely in June to help kick-start the economy, but critics argued it should have been done earlier.

Nigeria, which vies with South Africa for the mantle of Africa's biggest economy, is also battling an inflation rate at an 11-year high of 17.1% in July.
"A lot of Nigeria's current predicament could have been avoided," said Kevin Daly from Aberdeen Asset Management.

"The country is so reliant on oil precisely because its leaders haven't diversified the economy.
"More recently, they have tried, and failed, to prop up the naira, which has had a ruinous effect on the country's foreign exchange reserves and any reputation it might have had of being fiscally responsible."

Analysis: Martin Patience, BBC Nigeria correspondent
This economic recession comes as no surprise to millions of Nigerians. Many say they've never known it so tough.
The slump in global oil prices has hit Nigeria hard. The government depends on oil sales for about 70% of its revenues.

But critics say government policies made a bad situation even worse. The decision to delay devaluing Nigeria's currency meant many businesses struggled to get foreign currency to pay for imports, which had a cooling effect on the entire economy.

Following enormous pressure, the government changed tack this summer, allowing the naira to float.
That's led to a spike in inflation, but the hope is that it will attract foreign investors. The government also says the country needs to import less: it wants to see more products made in Nigeria.

Source http://www.bbc.com/news/business-37228741

Hnmmmm!
See matter.
Economy wey deaf and dumb , and even blind and beggers dey complain.

Both times Bubu has been at the helm of affairs... Nigeria slipped into recession...

Bubu is badluck...

#Bubumustgo

Government were warned of these situations before it occurrence now everybody is one way or the other feelings the heat.Anyway,what do you expect from a country where 10% of citizen are productive and 20% spend lavishly an 70% remains zombie?.

Una never see anything So na now day break abi?

Buhari will be better off attending to his cows, managing an economy is not his specialty.

For all those that voted an empty dry skull as a President.una get mind oo. [size=15pt]2 gbosa for una.[/size]

APC and EMEFELE successfully destroyed Nigeria through their trial and fail policies

Yes!!!


Buhari has done it!



Easier to destroy than to build



Congratulations.....!!!! APC



Just watch... they will soon come here and blame Jonathan

WE NEED DIGITAL PRESIDENT LIKE G
AND NOT ANALOG PRESIDENT LIKE BUBU

That's not News na.......

we are even close to depression....

Wen u won wit innocent nd coppers blood nd u expect things to work fine... Buhari must be disgrace... Must happen

Nigeria has gone into full recession just twice in our history and guess who was in power both times ? Yes you are right BUHARI

jk

Lol

Dutch disease.....

For instance, capital and labor (and land) may shift from the non-oil export sector to the oil sector (in order to maintain or increase reserves and production) and the non-tradable goods sector (to take advantage of the growing domestic demand). This explains why the increase in oil prices and the subsequent oil revenue windfall in many oil-exporting countries have tended to depress their non-oil export sector while at the same time generating a boom in both the oil and the non-tradable goods sectors. With capital and labor shifting from the non-oil export sector to the oil-sector and non-traded goods sector, firms in the non-oil export sector are forced to either close down or reduce their scale of operation. The boom in the oil and non-traded goods sector increases the demand for imported goods. This may not be a problem in the short-term so long as the country has enough foreign exchange to pay for the imports. [b]The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the economy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty.[/b]

From the article MANAGING THE DUTCH DISEASE IN NIGERIA

Time for APC to wake up and put Nigeria on the long and hard road to freedom from oil dependency.

We know the problem....and the solution is there.

Get well soon Nigeria. I won't pray for you because it will mean I have ignored you. I will rather implore you to be more creative.

But wait,the most religious country in the world?? Where is yahweh and allah tho? The largest offering donation on a single day in the world?? Hmm something is wrong.

Ok noted BBC, what else?

The DARKEST HOUR of the day is just before DAWN




NIGERIA WILL OVERCOME!!!

We know, why una dey remind us?

No me una follow blackmail GEJ out of office and ur baba tag us FANTASTICALLY CORRUPT

Just watching in 3d

This is just the official confirmation of Nigerians have been going thru in the past 1 year. I refused to blame Jonathan for this. APC should find a better excuse!

e don happen
wahala dey

Nice one

He did it in the 80s


He has done it again!


That guy is just too good


He thinks running an economy is the same as chewing goro

When you have a man who scored F9 in basic Mathematics running a country expect this kind of shit to happen.
Economics involves advanced and sophisticated mathematical paradigms and theorems that poor Bubu is simply incapable of grasping.
I hail Nigerians who can see no wrong in this man.

johntaiwo123:



Source http://www.bbc.com/news/business-37228741

The country's economt had been in recession for a while now but unfortunately we are just realising it.
Only God will get us out of this mess now that we even have a dullard ruling us.

Posterity will never forgive Nigeria Youths if all we do is to wail and wail without trying to form an alliance to save this nation from the hands of political cabals and cannibalistic leaders who have long outlived their political sagacity and intellectual acumen but are now in senescence!

ok