Nigeria exits recession, records 0.11% growth on ease of lockdown
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FIGURES from the National Bureau of Statistics (NBS) show that Nigeria’s gross domestic product (GDP) for the fourth quarter of 2020 grew by 0.11 percent, indicating an exit from recession.
The Nigerian economy plunged into its second recession under the present administration of President Muhammadu Buhari in the third quarter of 2020. Recession occurs when there are two consecutive quarters of negative growth. However, recovery happens when economic or GDP growth occurs after recession.
The GDP growth rate measures the economic output or activities of a nation by comparing growth in one-quarter to the previous one.
“Nigeria’s gross domestic product (GDP) grew by 0.11 percent (year-on-year) in real terms in the fourth quarter of 2020, representing the first positive quarterly growth in the last three quarters,” the report read.
The NBS noted that while the growth was weak, the gradual return of economic activities following the ease of restricted movements and limited local and international commercial activities in the preceding quarters was responsible for the positive growth.
On a quarter on quarter basis, real GDP growth was 9.68 percent, indicating a second positive consecutive quarter-on-quarter real growth rate in 2020 after two negative quarters.
“Overall, in 2020, the annual growth of real GDP was estimated at –1.92 percent, a decline of –4.20 percentage points when compared to the 2.27 percent recorded in 2019.”
The report also revealed that an average daily oil production of 1.56 million barrels per day (mbpd) was recorded in the fourth quarter of 2020- 0.11mbpd lower than the production recorded in the third quarter.