Nigeria’s economy contracts to the lowest level in 25 years

Nigeria’s economy worsened in the first quarter of 2016, declining to 0.36 percent year-on-year from 2.11 percent in the fourth quarter of 2015; 4.32 percentage points lower than growth recorded in the corresponding quarter of 2015, according to new figures released by the country’s Statistics Bureau. The performance of Africa’s largest economy is its worst in over two decades, as major sectors of the economy continued their woeful showing.

Nigeria GDP

Electricity and gas GDP plunged by 44.4 percent in Q1 2016 from 1.20 percent in Q4 2015 and -27.92 percent in the corresponding quarter of 2015. Finance and insurance GDP also fell by 11.28 percent in Q1 2016 from 6.41 percent and 9.01 percent in Q4 and Q1 2015 respectively. Transport services GDP fell to 2.23 percent in Q1 2016 from 5.14 percent in Q4 2015 and 7.57 percent in Q1 2015.

Manufacturing GDP slumped by 7.0 percent in Q1 2016 from 0.38 percent in Q4 2015 and – 0.70 percent in Q1 2015. Other (light) manufacturing GDP fell by 12.22 percent in Q1 2016 from -1.06 percent in Q4 2015 and -5.67 percent Q1 2015. Construction GDP declined by 5.37 percent in Q1 2016 from -0.35 percent and 11.17 percent in Q4 and Q1 2015 respectively.

Food and Beverage GDP declined by 11.12 percent in Q1 2016 from -5.63 percent in Q4 2015 and -5.23 percent in Q1 2015.

However, oil GDP improved to – 1.89 percent from -8.28 percent in Q4 2015 and -8.15 percent in Q1 2015.

Unemployment in the country also rose in the first quarter of 2016 to 12.1 percent from 10.4 percent in Q4 2015. So also was underemployment which rose to 19.1 percent in Q1 2016 from 18.7 percent in Q4 2015.

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