The National Bureau of Statistics (NBS) has confirmed that the 2016 economic recession was a full year recesssion, and the worst in the country’s history since 1987.
In 1987, according to World Bank data, Nigeria had a full year decline in gross domestic product (GDP) was put at 10.8 percent.
The country recorded recessions in 1991 and 1995, recording a full year economic decline of 0.6 and 0.3 percent respectively.
According to NBS GDP report released on Tuesday, Nigeria recorded a contraction of 1.51 percent in 2016.
“In the fourth quarter of 2016, the nation’s Gross Domestic Product (GDP) contracted by -1.30% (year-on-year) in real terms, from N18,533.75 billion in Q4 2015 to N18,292.95 billion in Q4 2016,” NBS said.
“This decline was less severe than the decline recorded in the previous quarter, of -2.24%, but was nevertheless lower than the growth rate recorded in the final quarter of 2015, of 2.11%.
“Quarter on quarter, real GDP increased by 4.09%, which partly reflects seasonal factors as well as a rise in the general price level. For the full year 2016, therefore GDP contracted by -1.51%, indicating real GDP of N67,984.20 billion for the year.”
BOTH OIL AND NON-OIL SECTORS RECORDED DECLINE
According to the report, both oil and non-oil sectors recorded a decline, but the non-oil sector increased its share of the economy to 92.85 percent.
“In the fourth quarter of 2016 this sector declined by -12.38% in real term (year-on-year). This was an improvement relative to the previous quarter, when the sector declined by -22.01%, but nevertheless was a more severe decline than in the fourth quarter of 2015, when a contraction of -8.23% was recorded.
“The non-oil sector declined by -0.33% in real terms in the fourth quarter of 2016. This was 0.36% points lower than growth of 0.03% recorded in Q3 2016, and 3.46% points lower than the 3.14% growth recoded in Q4 2015.
“Given that the growth rate was stronger than in the oil sector, the non-oil sector increased its share of GDP to 92.85%, from 91.94% in the fourth quarter of 2015,” NBS reports.