Is Nigeria About To Enter Recession Again?
This is a development no one wants to hear - Nigeria's economy may relapse into recession.
For the first time since exiting a hard-biting economic recession for the first time in 25 years, Nigeria's economic growth has slowed down.
According to a GDP report released on Monday by the National Bureau of Statistics, NBS, between January and March this year, Nigeria’s economic growth slowed as the non-oil sector struggled.
The economy grew by 1.95% in the first quarter lifted by the oil sector. That was a slight dip from 2.11% year-on-year in the final quarter of 2017.
The economy shrank 0.16% in the first quarter of 2018, NBS said.
Growth rates had been bouncing back since the third quarter of 2016, when the recession bottomed out.
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Nigeria was able to exit the recession due to rise in global oil prices.
Within the period under review, the oil sector grew 14.77%, higher than the non-oil sector which rose 0.76% between January to March, the NBS said.
Within that time, oil production stood at 2 million barrels per day in the quarter, up from 1.95 million in the previous quarter.
The GDP data is coming a day before the Central Bank of Nigeria, CBN announces its decision on interest rates, with recent economic data showing that there’s scope for a rate cut as inflation dropped to a more than two year low in April of 12.48%.
The apex bank has kept its rate at 14% since July 2016 to support the naira and curb inflation.
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