The just released GDP growth numbers by the National Bureau of Statistics (NBS) show how Nigeria’s economy performed in 2020.
Although GDP contracted by 1.92 percent in 2020 from growth of 2.27 percent the previous year, the economy limped out of its second recession in five years.
Here are some highlights from the report:
Nigeria is out of recession
Nigeria limped out of recession in the fourth quarter of 2020 with a GDP growth of 0.11 percent after contracting 6 percent and 3 percent in the second and third quarter of last year.
This came as a surprise especially since credible organisations such as the International Monetary Fund and the World Bank predicted that the economy will not exit recession until 2021.
Quarrying and Mineral emerge the best performing sector
The Quarrying and other Mineral sector emerged the best performing sector in 2020, growing 21.16 percent compared to a contraction of 5.63 percent in 2019 and 48.42 percent in the third quarter 0f 2019.
Nigeria’s oil GDP is at the lowest since 2016
The report also shows that Nigeria’s oil sector moved from a positive of 4.59 percent in 2019 to a contraction of 8.89 percent in 2020, which is the lowest since 2016 when it shrunk by 13.65percent.
This came on the back of the mandatory Organisation of Petroleum Exporting Countries (OPEC)+ output cuts and the impact of the coronavirus pandemic.
Oil production fell to 1.56 million barrels a day in the fourth quarter from 1.67 million barrels in the previous three months.
Read Also: Global markets update: Oil down, stocks mixed as investors recalibrate
Real estate sector out of recession
After six consecutive quarters of contraction, the real estate sector exited recession in the fourth quarter of 2020 with a growth of 2.81 percent compared to contraction of 3.45 percent in the fourth quarter of 2019.
Telecommunication remains resilient
As other sectors reeled from the effect of the pandemic and the economic recession, the telecommunications sector has managed to stay afloat to record a strong growth.
The Telecommunications sector grew 15.90 percent in 2020 compared to 11.41 percent in 2019 and 17.64 percent in the fourth quarter of 2020.
This sector drove the overall performance of the information and communications sector to 12.90 percent, up from 11.08 percent recorded in 2019.
Financial institutions grew 16.04%
Financial institutions emerged the third performing sector in 2020, growing by 13.34 percent compared to 2.24 percent in 2019.
The overall financial and insurance sector grew 9.37 in 2020 from 2.56 in 2019. This growth was mainly driven by the financial institutions as the insurance sector plunged 15.30 percent.
Manufacturing sector still in contraction
The Manufacturing sector remains in the negative regionwith a full year contraction of 2.27 percent in 2020 compared to 0.77 percent in the same period the year before.
The sector contracted 8.75 percent in the second quarter of 2020 and 1.51 percent in both the third and fourth quarter.
Oil refining is the worst performing sector
Oil refining sector was the worst performer in 2020 as the contracted by 66.2 percent in 2020 compared to a contraction of 31.39 percent in the previous year, and 56.50 recorded in the second quarter of 2020.
Trade sector still in contraction
The trade sector still contracted 8.49 percent in 2020 from 0.38 percent in 2019.
Although the sector is showing signs of recovery as it recorded an improved contraction of 3.42 percent in the fourth quarter of 2020 compared to a contraction of 12.12 percent in the third quarter.
The gloom persists in the transport and storage sector
The transport and storage sector contracted by 22.36 percent in 2020 compared to a growth of 10.73 percent in the same period a year before.
All the sectors under this sector also contracted in 2020. Road construction, rail transport, water transport and air transport contracted 22.25 percent, 33.64 percent, 16.44 and 36.98 percent respectively in 2020.
