Nigeria’s economy has always been shaky in the past few years. But with the pandemic, Nigeria has officially slipped into a recession after its gross domestic product contracted for the second consecutive quarter.
Nigeria was last in recession in 2016 at -1.62% growth and $2,176 GDP per capita.
But growth had been fragile and the coronavirus pandemic hit the economy hard, as did low oil prices. The continent’s top oil exporter relies on crude sales for 90% of foreign exchange earnings.
“Q3 2020 Real GDP contracted for second consecutive quarter by -3.62%. Cumulative GDP for the first 9 months of 2020 therefore stood at -2.48%,” Yemi Kale said on Twitter.
This is the lowest it has dropped since 1983 which had -10.92%.
From 2017 to 2018 it grew from 0.7% to 2.21%, which made the government set an expectation that the economy to contract by as much as 8.9% this year in a worst-case scenario without stimulus.