Official figures published on Saturday show that the Nigerian economy shrank again in the third quarter of year 2020, thus plunging it into its second recession in five years.
The figures show that this year’s recession, largely due to the impact of the COVID-19 pandemic, is worse than the last one in 2016 under the administration of President Muhammadu Buhari.
Figures released Saturday by the National Bureau of Statistics in its Gross Domestic Product (GDP) report for the third quarter of the year show that the GDP fell by 3.62 in the last three months leading to September.
This is the first time in three years that the economy of the country shrank in the second quarter of the year as GDP fell by 6.10 per cent, a big fall when compared with the growth rate of 1.87 per cent in the first quarter.
Two consecutive quarters of shrinking of a country’s GDP is seen by economists as a recession.
According to the NBS in August, the Q2 decline in the economy was occasioned by the lower levels of local and international economic activities due to the COVID-19 pandemic which led to the shutdown of virtually all activities in the country and beyond.
The economy slid into recession in 2016 after the GDP shrank in both Q1 and Q2 by 0.4 and 2.1 percent respectively, which the Buhari-led government blamed on the fall in crude oil prices and mismanagement of funds by previous governments.
Recall that the World Bank had predicted in October that Nigeria’s economy will plunge into recession due to the collapse in oil prices and the COVID-19 pandemic.