The Nigerian economy has recorded a negative growth rate as the country’s Gross Domestic Product (GDP) contracted by -6.10 per cent in the second quarter of 2020, the National Bureau of Statistics has revealed.
The bureau released the report on Monday.
The new rate is a decrease from 1.87 per cent in the first quarter of 2020 and 2.12 per cent in quarter two of 2019 respectively.
The report also noted that oil GDP contracted by -6.63 per cent in Q2 2020 compared to 5.06 per cent in Q1 2020 and 5.15 per cent in Q2 2019.
Non-oil GDP also contracted by -6.05% in Q2 2020 compared to 1.55 per cent in Q1 2020 and 1.64 per cent in Q2 2019.
According to the report, the negative growth recorded was due to the impact of the novel coronavirus (COVID-19) pandemic on the economy, which witnessed a significant decrease in activities during the quarter (April to June 2020).
A total lockdown was imposed on the country’s political capital, Federal Capital Territory; the commercial capital, Lagos State; and a strong industrial hub, Ogun State, by President Muhammadu Buhari as part of measures to curb the spread of COVID-19.
Some state governments also adopted a similar method in order to limit human transmission of the virus.
The report read: “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.”
The report further noted that the aggregate GDP of the economy in the quarter under review stood at N34,023,197.60 million in nominal terms.
The amount is -2.8 per cent lower than that of the second quarter of 2019, which recorded an aggregate of N35,001,877.95 million.
Also, the nominal growth rate was –16.81 per cent points lower than recorded in the second quarter of 2019, and –14.81 per cent points lower than recorded in the first quarter of 2020.
The report means that the Nigerian economy is recording negative growth for the first time in three years after its exit from the recession in 2016