Nigeria’s gross domestic product (GDP), which measures the worth of economic activities, crashed to its lowest since 1991 in the first quarter of 2016.
According to the GDP report released by the Nigerian Bureau of Statistics on Friday, the country’s economy crashed to a 25-year low of -0.36 percent GDP growth rate.
NBS says Q1 GDP growth declined to -0.36 percent from 2.11 percent in Q4 2015 and 3.96 percent in Q1 2015.
The last time the Nigeria economy grew below 1 percent was in 1999, a few months after the return of democracy in May, 1999.
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According to World Bank figures, the economy had a regression of -0.3 percent in 1995, and -0.6 percent in 1991.
Yemi Kale, the statistician general of the federation, who unveiled the report added that the oil, industries, power and manufacturing sectors of the economy shrunk in the period under review.
“Oil GDP estimated at -1.89% from -8.28% in q4 2015 and -8.15% in q1 2015 and non-oil GDP at -0.18% from 3.14% in q4 2015 & 5.59% in q1 2015,” he wrote from the report.
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“Electricity and gas GDP at -44.4% in q1 2016 from 1.20% and -27.92% in q4 and q1 2015 respectively. Industries GDP at -5.49% in q1 2016 from -3.04% in q4 2015 & -2.53% in q1 2015.
“Manufacturing GDP at -7.0% in q1 2016 from 0.38% and -0.70% in q4 and q1 2015 respectively. Other (light)manufacturing GDP at -12.22% in q1 2016 from -1.06% and -5.67% in q4 and q1 2015 respectively.
The report further showed that broadcasting, transport, agriculture and crop production had a positive growth.
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“Agric GDP at 3.09% from 3.48% in q4 2015 and 4.70% in q1 2015, services GDP at 0.8% in q1 2016 from 3.69% in q4 2014 & 7.94% in q1 2015.
“Broadcasting GDP at 6.85% in q1 2016 from 13.2% and 25.6% in q4 and q1 2015 respectively. Crop production GDP at 3.02% in q1 2016 from 3.25% and 4.46% in q4 and q1 2015 respectively.
“Transport services GDP at 2.23% in q1 2016 from 5.14% and 7.57% in q4 and q1 2015 respectively. Human health and social services GDP at 0.55% in q1 2016 from 2.86% and 2.11% in q4 and q1 2015 respectively
Finance and insurance GDP shrunk by -11.28% in q1 2016 from 6.41% and 9.01% in q4 and q1 2015 respectively, while financial institutions GDP was at -13.1% in q1 2016 from 6.62% and 9.52% in q4 and q1 2015 respectively.
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The GDP growth rate fell short of the International Monetary Fund (IMF) outlook, which projects that the Nigerian economy will grow by 2.3 percent in 2016.
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4 comments
It took obj less than than a year to begin our economic and political reengineering. It took late President Yardua less than to start it electoral reform. It equally took GEJ less than a year to reduced its predecessor’s seven-point agenda to a transformation agenda. After one year I believe that the man I so much hope will take us out the wood is afterall clueless!
Welcome the much-desired change!
Congratulations, Nigeria!
This government is clueless. When they threw out seasoned economists and condemned every professional that worked with OBJ, Yaradua and GEJ, I knew they were playing bad politics. The result is the shrinking economy we are seeing.
While heading PTF, billions were stolen under his watch and he did not know. What is the guarantee that billions are not being stolen at this moment and we are being told that GEJ administration is the cause of our problems? If money was stolen and mismanaged under GEJ, why was the economy better at that time and yet under a supposedly more ‘righteous’ man Nigeria’s economy is going up in smoke. I think our president is being taking for another ride. It is when he leaves office that the truth about the level of waste and mismanagement will be known. I can’t wait for post-election period 2019 or 2023.
Why? Simple. Different external factors. The global oil price crash has thrown Nigeria into disarray beyond what basic governance can grasp. We have stood on 1 leg and failed to diversify the economy over many administrations. Oil has crashed so this is not a surprise. Let us hope we don’t fall into recession all the same. I do not envy Buhari right now.