*GDP contracts by -2.06% in 2nd qtr, Nigeria in big time recession
*PDP: Nigeria in its worst economic state since Aug. 1987
National Bureau of Statistics (NBS) on Wednesday released what could be termed the gloomiest report of the nation’s economic outlook in 29 years as it reported that 4,580,602 people lost their jobs since May 29, 2015.
The NBS also reported that Nigeria’s gross domestic product (GDP) contracted by -2.06% within the second quarter of this year, confirming that the country was in big time recession.
The report stated that the figure was lower by 1.70 per cent points from the negative growth rate of 0.36 per cent recorded in the preceding quarter.
It stated that it was also lower by 4.41 per cent points from the growth rate of 2.35 per cent recorded in the corresponding quarter of 2015.
The NBS report highlighted the following:
– GDP contracted by -2.06% in Q2 2016. In contrast, the economy grew by 2.35% in Q2 2015. Q2 was worse than the -0.36% shrinking of the economy in Q1 2016.
– Headline Inflation for July 2016 stands at 17.1%. It was from 16.5% in June 2016.
– Food inflation was 15.58% for July 2016 from 15.3% in June 2016.
– Portfolio investment declined to an estimated $245.3m in Q2 2016. This represents a 9.5% from $271.0m in Q1 2016 & is a far cry from $2.81bn in Q2 2015.
– FDI declined from $211.1m in Q2 2015 and $174.4m in Q1 2016 to an estimated $133.0m in Q2 2016.
– Total value of capital imported in Q2 2016 is estimated at mere $647.1m. This is the lowest quarterly figure since Nigeria started keeping records of capital importation. It is a decline from $710.9 m in Q1 2016 & a far cry from $2.67bn in Q2 2015.
– A total of 4,580,602 people have lost their jobs since May 29, 2015
– The number of persons in full time employment decreased by 351,350 in Q2 2016 compared to Q1 2016.
The NBS explained that: “Within the reference period, the total number of persons in full time employment (did any form of work for at least 40 hours) decreased by 351,350 or 0.65 per cent when compared to the previous quarter and also decreased by 749,414 or 1.38 per cent compared to second quarter of 2015.’’
The NBS also said with 106.69 million and 79.9million, it meant 26.8 million persons within the economically active or working age population decided not to work for one reason or the other in second quarter of 2016.
In its reaction, People’s Democratic Party (PDP) said: “The result of these indices is that Nigeria is in its worst economic state for 29 years – dating back to 1987 when the nation had to take harsh steps to recover from President Buhari’s policies of 1984-85.
“As with 1984-85, companies are fleeing our shores in droves. Manufacturers Association of Nigeria (MAN) recently stated that 272 companies have shut down in the past 1 year.
“Furthermore, like we suffered in 1984-85, we are suffering a brain drain where our best & brightest talents are leaving the country in search of a better life elsewhere.”
The Party, which spoke through Prince Deji Adeyanju, said: “It is disheartening that the Buhari administration is destroying the Nigerian economy and our collective future by the implementation of his archaic and incoherent economic policies which failed in 1984-85 and are failing spectacularly now.”
Adeyanju added: “Our dismay is worsened by the fact that every sphere of the Nigerian socio-political space (ranging from the conduct of elections, human rights, respect for the rule of law, security, technology, health etc) is negatively affected by the Buhari administration.”
