Update: 20 Key Takeaways From Nigeria's Six Percent Economy Decline

Nigeria's Gross Domestic Product (GDP) has been heavily impacted by the COVID-19 pandemic and the lockdown measures as the country's economy declined by six percent in the second quarter of 2020. This is the first time Nigeria's economy will contract since the country exited recession in 2017.

According to a report by the Nigerian Bureau of Statistics (NBS), the Real gross domestic product (GDP) contracted by -6.10% compared to the 1.87% recorded in the first-quarter 2020 and 2.21% in Q2 2019. AllNews also gathered that Oil GDP contracted by -6.63%, compared to the 5.06% in Q1 2020 and Q2 2019's 5.15%.

The report further disclosed that Non-Oil GDP contracted by -6.05%, compared to 1.55% in the first quarter of 2020 and the 1.64% it recorded in the corresponding period of 2019 second quarter.

Key Takeaways From Nigeria's Six Percent Economy Decline

It was learnt that "In the quarter under review, aggregate GDP stood at NGN34,023,197.60 million in nominal terms, or -2.8% lower than the second quarter of 2019 which recorded an aggregate of NGN35,001,877.95 million.

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"Overall, the nominal growth rate was –16.81% points lower than recorded in the second quarter of 2019, and –14.81% points lower than recorded in the first quarter of 2020. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors." NBS reports.

- Agric real GDP grew by 1.58 % compared to 2.20% in Q1 2020 & 1.79% in Q2 2019.

- Crop Production under Agric real GDP grew by 1.44 % compared to 2.38% in Q1 2020 & 1.94% in Q2 2019.

- Fishing under Agric real GDP grew by 5.68 % compared to 1.49% in Q1 2020 & 1.09% in Q2 2019.

- Livestock under Agric real GDP grew by 2.26 % compared to 0.63% in Q1 2020 & -0.01% in Q2 2019.

- Forestry under Agric real GDP grew by 1.08 % compared to 1.71% in Q1 2020 & 3.23% in Q2 2019.

- Mining & Quarying under Industry real GDP contracted by -6.60% compared to 4.58% in Q1 2020 & 7.00% in Q2 2019.

- Crude Petroleum & Natural Gas under Mining & Quarrying real GDP contracted by -6.63% compared to 5.06% in Q1 2020 & 7.17% in Q2 2019.

- Coal Mining under Mining & Quarrying real GDP grew by 10.53% compared to -43.41% in Q1 2020 & 7.63% in Q2 2019.

- Manufacturing under Industry real GDP contracted by -8.78% compared to 0.43% in Q1 2020 & -0.13% in Q2 2019.

- Food & Beverage under Manufacturing real GDP contracted by -3.01% compared to 1.10% in Q1 2020 & 1.22% in Q2 2019.

- Cement under Manufacturing real GDP contracted by -5.54% compared to 1.67% in Q1 2020 & 1.58% in Q2 2019.

- Textiles, Apparel & Footwear real GDP contracted by -14.43% compared to 1.03% in Q1 2020 & -1.42% in Q2 2019.

- Electricity/Gas under Industry real GDP contracted by -3.0% compared to -2.31% in Q1 2020 & 0.43% in Q2 2019.

- Construction under Industry real GDP contracted by -31.77% compared to 1.69% in Q1 2020 & 0.67% in Q2 2019.

- Information &Communication under Services real GDP grew 15.09% compared to 9.99% in Q1 2020 & 9.09% in Q2 2019.

- Telecoms real GDP grew  by 18.1% compared to 9.7% in Q1 2020 & 11.3% in Q2 2019.

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- Arts, Entertainment & Recreation under Services real GDP contracted  -8.93% compared to 1.53% in Q1 2020 & 0.81% in Q2 2019.

- Transport Services under Transportation and Storage real GDP contracted by -11.15% compared to -1.38% in Q1 2020 & 1.87% in Q2 2019.

- Air Transport under Transportation and Storage real GDP contracted by -57.38% compared to 5.68% in Q1 2020 & 12.31% in Q2 2019.

- Services real GDP contracted by -6.78% compared to 1.57% in Q1 2020 & 1.94% in Q2 2019. (To read more on the NBS report, click this link).

Factors That Dragged Nigeria's Economy Down In Q2

The second quarter of 2020 wasn't a good period for Nigeria, just like it wasn't for other countries across the world. Close to the end of the second month of the first quarter, February, Nigeria recorded its first cases of COVID-19, leading to Nigeria's President Muhammadu Buhari directing a nationwide lockdown in late March.

The lockdown affected major revenue-driven industries across Nigeria. The private sector, production, and even the informal sector were on lockdown, except for sectors like banks, telecommunications, and agric which were offering essential services.

The COVID-19 measure negatively affected the country's gross domestic product as companies couldn't produce, distribute, or sell their products and services. Also, the crash in oil prices had an impact on oil revenue. These factors reflected on the revenue of the country - in the first half of 2020, Nigeria failed to meet its projected revenue of NGN2.62 trillion, generating NGN1.62 trillion.