Nigeria has lapsed again into recession under the administration of President Muhammadu Buhari.
With the National Bureau of Statistics (NBS) disclosing that the nation’s Gross Domestic Product (GDP) stood at 3.62 percent in the third quarter of 2020, Nigeria entered her second recession in five years, and third recession under Buhari.
While Nigeria plunged into recession in the 80s (during Buhari’s military rule), the country entered its first recession under the president’s democratic rule in 2016.
In its report, NBS stated that the performance of the economy in the third quarter of 2020 reflected “residual effects of the restrictions to movement and economic activity implemented across the country in early Q2 in response to the COVID-19 pandemic.
“As these restrictions were lifted, businesses re-opened and international travel and trading activities resumed, some economic activities have returned to positive growth.”
Possible reasons for the worst economic decline in nearly 40 years
It is an open secret that the Nigerian economy immensely suffered from the raging COVID-19 pandemic, which caused a significant decline in oil revenues as global economic activities stalled for months.
Oil production fell to 1.67 million barrels a day from 1.81 million barrels in the previous quarter, according to Bloomberg figures, the lowest since the third quarter in 2016 when the economy last experienced a recession.