Nigeria\u2019s economy shrank by an annualised 6.1 percent in the second
\nquarter of 2020, the statistics agency said Monday, owing to low oil
\nprices and effects from the coronavirus.<\/p>\n
Economic activity in Africa\u2019s largest producer of crude oil had expanded
\nby 1.87 percent in the first quarter, compared with the same period a
\nyear earlier, the National Bureau of Statistics (NBS) said in a report.<\/p>\n
Nigeria, which relies on the oil sector for 70 percent of government
\nrevenue and 90 percent of its foreign exchange earnings, has seen oil
\noutput and revenue battered by the coronavirus pandemic.<\/p>\n
Like many others, the government had to impose nationwide lockdowns to
\ncontain the spread of the virus.<\/p>\n
\u201cThe decline was largely attributable to significantly lower levels of
\nboth domestic and international economic activity during the quarter,
\nwhich resulted from nationwide shutdown efforts aimed at containing the
\nCOVID-19 pandemic,\u201d an NBS statement said.<\/p>\n
Oil production stood at 1.81 million barrels per day in the second
\nquarter, compared with 1.98 mbpd in the same period of 2019, it added.<\/p>\n
Activity in non-oil sectors fell on average by 6.05 percent, the first
\nsuch decline in nearly three years.<\/p>\n
Nigeria emerged from its first recession in more than two decades in
\n2016, but the economy has been struggling to fully recover ever since.<\/p>\n
Inflation has risen to 12.8 percent, its highest level in more than two
\nyears, while unemployment currently stands at 27 percent, up from 23
\npercent in 2018.<\/p>\n
The government has revised its 2020 budget, reduced its oil benchmark
\nprice to $28 per barrel from $57 and obtained several loans to help cope
\nwith the drop in revenue.<\/p>\n
Nigeria has also cut its crude output in line with Organization of
\nPetroleum Exporting Countries (OPEC) efforts to strengthen the oil
\nmarket.<\/p>\n
The Capital Economics consulting group did not see any immediate relief
\nfor the battered economy.<\/p>\n
\u201cLooking ahead, we suspect that Nigeria\u2019s recovery will be weak. OPEC
\nproduction quotas will continue to weigh on the oil sector, especially
\nif Nigeria bows to pressure from other members of the cartel to make
\ncompensatory cuts for overproduction in previous months,\u201d it said.<\/p>\n
Nigeria\u2019s economy shrank by an annualised 6.1 percent in the second quarter of 2020, the statistics agency said Monday, owing to low oil prices and effects from the coronavirus. Economic…<\/p>\n","protected":false},"author":1,"featured_media":75492,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-75491","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\n