Nigeria's Gross Domestic Product (GDP) decreased by -6.10% ear-on-year) in real terms in the second quarter of 2020, ending the 3-year trend of low but positive real growth rates recorded since the 2016/17 recession.

The decline was largely attributable to significantly lower levels of both domestic and international economic activity during the quarter, which resulted from nationwide shutdown efforts aimed at containing the COVID-19 pandemic.

The domestic efforts ranged from initial restrictions of human and vehicular movement implemented in only a few states to a nationwide curfew, bans on domestic and international travel, closure of schools and markets etc., affecting both local and international trade.

The efforts, led by both the Federal and State governments, evolved over the course of the quarter and persisted throughout.

When compared with Q2 2019, which recorded a growth of 2.12%, the Q2 2020 growth rate indicates a drop of -8.22% points, and a fall of -7.97% points when compared to the first quarter of 2020 (1.87%). Consequently, for the first half of 2020, real GDP declined by -2.18% year on year, compared with 2.11% recorded in the first half of 2019. Quarter on quarter, real GDP decreased by -5.04%.  Furthermore, only 13 activities recorded positive real growth compared to 30 in the preceding quarter.

In the quarter under review, aggregate GDP stood at N34,023,197.60 million in nominal terms, or 2.8% lower than the second quarter of 2019 which recorded an aggregate of N35,001,877.95 million. Overall, the nominal growth rate was -16.81% points lower than recorded in the second quarter of 2019, and -14.81% points lower than recorded in the first quarter of 2020. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors. 

The Oil Sector

In the second quarter of 2020, average daily oil production of 1.81 million barrels per day (mbpd) was recorded. This was -0.21mbpd lower than the daily average production of 2.02mbpd recorded in the same quarter of 2019, and  -0.26mbpd lower than the first quarter 2020 production volume of 2.07mbpd by (Figure2). 

The real growth of the oil sector was -6.63%  (year-on-year) in Q2 2020 indicating a decrease of -13.80% points relative to the rate recorded in the corresponding quarter of 2019. Growth decreased by -11.69% points when compared to Q1 2020 which recorded 5.06%.  Quarter-on-Quarter, the oil sector recorded a growth rate of -10.82% in Q2 2020. The Oil sector contributed 8.93% to total real GDP in Q2 2020, down from figures recorded in the corresponding period of 2019 and the preceding quarter, where it contributed 8.98% and 9.50% respectively.  

The Non-Oil Sector

The non-oil sector declined by -6.05% in real terms during the reference quarter (Q2 2020).  It was the first decline in real non-oil GDP growth rate since Q3 2017. The recorded growth rate was -7.70% points lower compared to the rate recorded during the same quarter of 2019, and -7.60% points compared to the first quarter of 2020.

Nevertheless, non-oil sector output was driven by Financial and Insurance (Financial Institutions),  Information and Communication (Telecommunications),  Agriculture (Crop Production), and Public Administration, moderating the economy-wide decline.

On the other hand, sectors which experienced the highest negative growth included Transport and Storage, Accommodation and Food Services, Construction, Education, Real estate and Trade among others.

In real terms, the Non-Oil sector accounted for 91.07% of aggregate GDP in the second quarter of 2020, slightly higher than the share recorded in the second quarter of 2019 (91.02%)  as well as the first quarter of 2020 (90.50%).

 

https://brandspurng.com/2020/08/24/nigerias-gdp-shrinks-by-6-10-in-q2-2020-nbs/

I knew our clueless govt will blame it on the Covid 19 pandemic, meanwhile all sane Nigerians know that these incompetent leaders are our real pandemic.

SmartProf:
I knew our clueless govt will blame it on the Covid 19 pandemic, meanwhile all sane Nigerians know that these incompetent leaders are our real pandemic.

They have arrived. The container economists

JAMO84:
They have arrived. The container economists

So says a brain dead zombie.

femmyapson:
this space is booked for righteousness89

What does he have to say that you can't also say? Or don't you have your own unique opinion on topical issues?

One man's incompetence is a factor in three economic recessions.

Damnnnnn niggarrr
Isoright

I'm not surprised

Am not surprised because Buhari is a dunce

Recession pro loading. Everybody fasten your seat belt

SmartProf:
I knew our clueless govt will blame it on the Covid 19 pandemic, meanwhile all sane Nigerians know that these incompetent leaders are our real pandemic.

No doubt that incompetent and wicked leaders are a pandemic in Nigeria, but sane humans around the world also know the covid19 impact is responsible for the current economic downturn around the globe. But then, such level of understanding must be too complex for typical Nigerians who can only see politics, tribe and religion.

una neva cheechomtin...

We warned you all that bubu is clueless

Thank God I operate from Heaven's economy

SmartProf:
I knew our clueless govt will blame it on the Covid 19 pandemic, meanwhile all sane Nigerians know that these incompetent leaders are our real pandemic.

tell me the country where GDP hasn't shrinked this year?

Recession awaiting us

Not surprising

SmartProf:
I knew our clueless govt will blame it on the Covid 19 pandemic, meanwhile all sane Nigerians know that these incompetent leaders are our real pandemic.

I'm not a supporter of this government but sometimes you need to think before opening your mouth so that you don't look like a fool.

USA economy has shrunk by 8%
EU economy has shrunken by 10%
South Africa economy shrunk by 8%
Brazil economy shrunk by 9%.


We're facing a global pandemic and what you could think about is Buhari.

No doubt Buhari has failed us all.

You can bame him for other things but definitely not this one.

femmyapson:
this space is booked for righteousness89

Always booking space for someone every thread. Are you rubber-stamp, the clapping group?

[s]

SmartProf:
I knew our clueless govt will blame it on the Covid 19 pandemic, meanwhile all sane Nigerians know that these incompetent leaders are our real pandemic.

[/s]
Change your name from smart to dull IN THIS CONTEXT

Its a welcome development. Recession loading...

What happens to the already existing ones?

Politicians will never disappoint you in matters of White Elephant Projects

Dictionary meaning of Buhari is DISASTER.

Put up this failed British experiment for sale now and share the money even if na 1 super pack indomie e reach us it’s better.

Dr Donald Peterson,is a philanthropist,a great leader,a boss that listens to his subordinates. Come join us and let's promote this great leader together.

God bless governor of Delta State!

God bless Dr Donald Peterson

God bless Ika Youths.

Stop comparing the economy of countries with 10m population with a country of 200m alongside poverty capital even before the pandemic..

It's not the same.. it's a lot terrible.

Terrible times for the masses under this present administration

careytommy37:
We warned you all that bubu is clueless

Thank God I operate from Heaven's economy

Only China has recorded positive Q2 GDP growth. Is Buhari the one responsible for the world recording negative growth? Kai!!! Some countries went as bad as negative 30%!
6% was worse than I was expecting but to say Nigeria will grow when the country was on lock down is tantamount to dreaming

mfm04622:


Only China has recorded positive Q2 GDP growth. Is Buhari the one responsible for the world recording negative growth? Kai!!! Some countries went as bad as negative 30%!
6% was worse than I was expecting but to say Nigeria will grow when the country was on lock down is tantamount to dreaming

What of countries like Sweden where there was no lockdown, are they also experiencing this?