Latest figures have shown that Nigeria’s economy contracted by 6.1% in real terms in the second quarter of 2020 compared to a year earlier. These figures, according to the National Bureau of Statistics comes amid lockdowns which have taken a toll on Africa’s largest economy and top oil producer.
The Gross Domestic Product Report (Q2 2020) released by the NBS says the decline was largely attributed 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.
Growth in Africa’s top oil producer was affected by a reduction in crude oil production. The NBS says the economy recorded an average daily oil production of 1.81 million barrels per day. 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. On Monday, Brent futures slipped 2 cents, or 0.1%, to $44.33 a barrel by 0316 GMT, while U.S. West Texas Intermediate crude was down 2 cents, or 0.1%, to $42.32 a barrel. Both benchmark contracts had risen early on the day.
The non-oil sector, driven by Financial Institutions, Telecommunications, Agriculture, and Public Administration, declined by –6.05% in real terms during the reference quarter (Q2 2020). In real terms, the statistics office said 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%)