Nigeria’s Gross Domestic Product (GDP) has again declined by -6.10 per cent (year-on-year) in Q2 2020, ending the three-year trend of low but positive real growth rates recorded since the 2016/17 recession.
Compared with Q2 2019 (+2.12 per cent), the Q2 2020 growth rate indicates a drop of -8.22 per cent (points), and a fall of -7.97 per cent (points) when compared to the first quarter of 2020 (1.87 per cent).
For the first half (Q1 & Q2) of 2020, the real GDP declined by -2.18 per cent year on year compared with 2.11per cent recorded in the first half of 2019.
This significant decline reflects the negative impacts of the COVID-19 pandemic and crash in oil price on Nigeria’s economy.
The report also showed that Nigeria’s oil sector recorded –6.63 per cent (year-on-year) in Q2 2020, indicating a decrease of –13.80 per cent (points) compared to the rate recorded in the corresponding quarter of 2019.
In the second quarter of 2020, average daily oil production of 1.81 million barrels per day (mbpd) was recorded.
This was -0.21mbpd lower than the daily average production of 2.02mbpd recorded in the same quarter of 2019, and -0.26mbpd lower than the first quarter 2020 production volume of 2.07mbpd.
Similarly, the non-oil sector declined by –6.05 per cent in real terms during the reference quarter (Q2 2020). This was the first decline in real non-oil GDP growth rate since Q3 2017.
In the quarter under review, aggregate GDP stood at N34,023,197.60 million in nominal terms, or 2.8 per cent lower than the second quarter of 2019 which recorded an aggregate of N35,001,877.95 million.