Nahimah Ajikanle Nurudeen
The latest report from the National Bureau of Statistics (NBS) has shown a declined in the Gross Domestic Product by 2.24per cent in the third quarter 2016.
The report which was posted on the agency’s website on Monday shown that the Conuntry’s economy faced massive revenue shortage, foreign exchange shortage and volatile naira-dollar parity as major indices for the declined.
According to the report, Nigeria’s oil and gas sector falls 22.01 per cent in the third quarter ended September, while non-oil sector grew a paltry 0.03 per cent.
Oil sector contribution to GDP was seen at 8.19 per cent and non-oil sector contribution to GDP was higher at 91.81per cent.
During the period under review, Nigeria’s Aggregate Gross Domestic Product in nominal terms was recorded at 26.558 billion naira, or a 9.23 per cent growth.
The latest development might have worsened the country’s chances of getting out of recession in 2016, according to NBS.
It was a similar case earlier in second quarter of 2106 as Nigeria’s Gross Domestic Product (GDP) had contracted by 2.06 per cent.
According to the NBS report, the decline caused the naira to get weaker while lower oil prices dragged the oil sector down with output shrinking by 0.36 in first quarter.
The nominal GDP was 2.73 per cent higher at 23.48 million naira at basic prices during the first quarter.
The report reads in part “In the third quarter of 2016, the nation’s Gross Domestic Product (GDP) contracted by -2.24% (year-on-year) in real terms. This was lower by 0.18% points from growth recorded in the preceding quarter and also lower by 5.08% points from growth recorded in the corresponding quarter of 2015. Quarter on quarter (unadjusted for seasonality), real GDP increased by 8.99%.
“During the quarter, aggregate GDP stood at N26,558,952.83 million (in nominal terms) at basic prices. Compared to the third quarter 2015 value of N24,313,636.94 million. Nominal GDP grew by 9.23%. This growth was higher relative to growth recorded in the third quarter of 2015 by 3.22% points.”
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