Nigeria's GDP declines by 2.06 % in 2nd quarter – NBS
The National Bureau of Statistics (NBS) said Nigeria's Gross Domestic Product (GDP) in real terms declined by 2.06 per cent in second quarter of 2016.
This is contained in the Nigerian Gross Domestic Product Report for Second Quarter of 2016 released by NBS on Wednesday in Abuja.
The report stated that the figure was lower by 1.70 per cent points from the negative growth rate of 0.36 per cent recorded in the preceding quarter.
It stated that it was also lower by 4.41 per cent points from the growth rate of 2.35 per cent recorded in the corresponding quarter of 2015.
'Quarter on quarter, real GDP increased by 0.82 per cent during the quarter, nominal GDP was N23, 483,954.78 million (in nominal terms) at basic prices. 'This was 2.73 per cent higher than the second quarter 2015 value of N22, 859,153.01 million.
'This growth was lower than the rate recorded in the second quarter of 2015 by 2.44 per cent points.
'The Nigerian economy can be more clearly understood according to the oil and non-oil sector classifications.''
The report said that during the period under review, oil production was estimated at 1.69 million barrels per day (mbpd), 0.42 million barrels per day lower from production in first quarter of 2016.
It said that oil production was also lower relative to the corresponding quarter in 2015 by 0.36 million barrels per day when output was recorded at 2.05mbp.
Meanwhile, the report said that growth in the non-oil sector was largely driven by the activities in seven areas of the economy.
It listed the seven areas as Agriculture, Information and Communication, Water supply, Arts entertainment and recreation, Professional scientific and technical services, Education and other services.
According to the report, the areas have grown positively while the remaining 19 major sectors, many of which are substantially indirectly dependent on the oil sector have recorded negative growth.
' The non-oil sector accordingly declined by 0.38 per cent in real terms in the second quarter of 2016.
'This growth rate was 0.20 per cent points lower than the first quarter of 2016 (-0.18 per cent), and 3.84 per cent points lower from the corresponding quarter in 2015 (3.46 per cent).
' In real terms, the non-oil sector contributed 91.74 per cent to the nation's GDP, higher from shares recorded in the first quarter of 2016 (89.71 per cent) and the second quarter of 2015 (90.20 per cent)''.
By economic principles, an economy is said to be in recession when these contractions are observed at least over two quarters. Therefore, the results of second quarter of 2016 GDP growth rate has placed Nigeria in recession from a professional point of view.