The recently released GDP report by the National Bureau of Statistics shows that the Nigerian economy has entered its second recession in five years after the economy contracted by 3.62 percent in Q3’20. The report shows best and worst-performing sectors in the third quarter of 2020.
Five best performing sectors in 2020
Quarrying and other Mineral sector
The Quarrying and other Mineral sector emerged the best performing sector, growing 41.81 percent compared to -6.39 percent in Q2’2020 and -14.02 percent in the third quarter 0f 2019.
Although, the growth was not sufficient to boost the overall mining and quarrying sector, as the latter plunged -13.2 percent from 6.19 percent recorded in the same period the previous year.
The mining and quarrying sector was dragged by crude petroleum and natural gas, coal mining and metal ores which plunged 13.8 percent, 13.9 percent and 6.2 percent respectively.
Telecommunications and Information
The Telecommunications and Information sector took the second spot of top performers, growing by 17.36 percent in the third quarter, up from 12.16 percent in the same period last year.
Although, the third quarter performance was less than 18.1 percent recorded in the second quarter of the year.
This sector drove the overall performance of the information and communications sector to 14.5 percent, up from 9.88 percent recorded in the third quarter of 2019.
Cement
Cement emerged the third performing sector in Q3, growing by 11.90 percent compared to -5.54 percent in Q2’2020 and 6.87 percent in the third quarter of 2019.
However, the growth was not sufficient to boost the overall Manufacturing sector to the positive region, as the it declined -1.51 percent, although an improvement from -8.78 percent recorded in Q2’20.
Water Supply, Sewerage, Waste Management and Remediation
Water supply, sewerage, waste management and Remediation came next recording a growth of 7.10 percent; an increase from -1.90 percent recorded in the same period last year, and up from 5.71 percent in the previous quarter.
Motor vehicles and assembly
Motor vehicles and assembly recorded a growth of by 7.03 percent, higher than -1.52 recorded in 2019 and 6.95 percent seen in the previous quarter.
Other sectors like the financial institutions, chemical and pharmaceutical and food and beverages also performed well as they grew 6.8 percent, 6.6 percent and 5.6 percent respectively.
Five Worst Performing Sectors
The pandemic has continued to put a strain on some sectors of the economy resulting in a meagre performance compared to other sectors.
Oil refining
Oil refining contracted by -68.2 percent during the third quarter compared to -30.77 percent in the same period last year, and -67.6 recorded in the second quarter of 2020.
Road Transport
The road transport subsector contracted the most by -46.6 percent compared to 20.18 percent in the same period and -51.37 in the second quarter of 2020.
Rail Transport and Pipeline
Rail transport and pipeline also contracted by -46.4 percent in the third quarter compared to 4.05 in the same period last year, up -63.32 percent in Q2’20.
Air Transport
Air transport contributed 38.8 percent to GDP in Q3 2020, waning from the 15.33 percent recorded in the corresponding period of 2019, and lower than -57.38 percent recorded in the second quarter of 2020.
The transportation and storage sector was one of the worst performers in the third quarter of 2020 compared to other sectors with almost all six activities under this industry recording negative growth rates in Q3 2020 expect the Post and Courier Services.
Accommodation and food services
Accommodation and food services also contracted by -22.6 percent compared to 2.28 in the same period last year and up from 40.19 in the second quarter.
