Nigeria's economy contracts by 6.1% during second quarter as a result of Covid-19 lockdown

NIGERIA'S gross domestic product (GDP) fell by 6.1% during the second quarter of 2020 as a result of the lockdown brought about by the coronavirus pandemic according to statistics just released by the National Bureau of Statistics (NBS).

Although Nigeria did not suffered the worst of the pandemic medically, the country's economy has been hit hard by the suspension of global trade. Being a mono-economy with about 95% of government revenue coming from the sale of crude oil, the treasury has also been hit hard by the collapse in the price and demand of petroleum.

Other sectors of the Nigerian economy such as aviation, tourism and shipping have also been severely paralysed by the global economic lockdown. According to the NBS, the latest decline ends the three-year trend of low but positive real growth rates recorded since the end of the 2016/17 recession.

This decline was largely attributable to significantly lower levels of both domestic and international economic activity during the quarter. With markets, hotels, restaurants, bars and clubs being shut, the local entertainment and hospitality industries have particularly badly hit.

An NBS spokesman said: “The domestic efforts ranged from initial restrictions of human and vehicular movement implemented in only a few states to a nationwide curfew, bans on domestic and international travel, closure of schools and markets etc, affecting both local and international trade. The efforts, led by both the federal and state governments, evolved over the course of the quarter and persisted throughout.”