Nigeria Records GDP Growth of -6.10% in Q2’2020 lower than 2.12% in Q2’2019

Nigeria Records GDP Growth of -6.10% in Q2’2020 lower than 2.12% in Q2’2019

Dear Client/Reader,

The National Bureau of Statistics just released the second quarter 2020 GDP report. According to the report, the nation’s Gross Domestic Product (GDP) contracted by 6.10% (year-on-year) in real terms.

This growth in Q2’2020 is 8.22% points lower than the rate recorded in the corresponding quarter of 2019 (2.12%) and 7.97% points lower than the rate recorded in Q1’2020 (1.87%).

In the quarter under review, aggregate GDP stood at N34.02 trillion in nominal terms. This represents 2.80% year on year decline in nominal GDP when compared to the corresponding quarter of 2019 (N35.00 trillion). The nominal GDP growth rate in Q2’2020 was lower than the rate recorded in Q2’2019 by 16.81%.

The Oil Sector

During the period under review, Oil production stood at 1.81 million barrels per day (mbpd), 0.21 million barrels lower than the daily average production recorded in the second quarter of 2019 (2.02 mbpd).

Real growth of the oil sector was -6.63% (year-on-year) in Q2’2020. This is lower by 13.80% points compared to the rate recorded in the same quarter, 2019. Oil sector growth decreased by -11.69% points when compared to the second quarter of 2019 (5.06%). Quarter-on-Quarter, the oil sector recorded a growth rate of -10.82% in Q2’2020. As a share of the economy, the Oil sector contributed 8.93% to total real GDP in Q2’2020, up 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. This is lower by -7.70% point compared to the rate recorded in the same quarter of 2019 and -7.60% points lower than the first quarter of 2020. The non-oil sector output was mainly driven by Financial and Insurance (Financial Institutions), Information and Communication (Telecommunications), Agriculture (Crop Production), and Public Administration. 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 contributed 91.07% to the nation’s GDP during the reference quarter, higher than the 91.02% recorded in Q2’2019 and the 90.50% recorded in the first quarter of 2020.

Regards.

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