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Without officially exiting first recession, Nigeria plunges into another

Without officially exiting first recession, Nigeria plunges into another recession

 

***Buhari’s fourth from military to civilian rule

Like jumping from frying pan into fire, Nigeria has plunged into another economic recession within a space of five years.

Although Nigerians were divided about the federal government’s claims that the country exited the first recession which the country was thrown into following the 2016 hike of the pump price of petrol and electricity tariff, the cost of living continued on a steady rise while production went down and more Nigerians ended in the unemployment market.

The latest recession is described as the worst the country has experienced in over three decades.

the National Bureau of Statistics (NBS) on Saturday, November 21, released the figures of the country’s Gross domestic product (GDP) which indicate that the nation recorded a contraction of 3.62 percent in the third quarter of 2020.

This data is the second consecutive quarterly GDP decline since the recession of 2016. The cumulative GDP for the first nine months of 2020, therefore, stood at -2.48 percent.

According to records, the last time Nigeria recorded such cumulative GDP was in 1987, when GDP declined by 10.8 percent.

The World Bank and NBS figures show this is the second recession under President Muhamadu Buhari’s democratic reign and his fourth as head of state.

It would be recalled that the World Bank had earlier this year, warned in a statement that the Nigerian economy is expected to plunge into severe economic recession, the worst in almost 40 years due to the collapse of oil prices and the outbreak of the coronavirus disease.

This report released by the World Bank in June estimated that Nigeria’s economy would likely contract by 3.2% in 2020,

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