NIGERIA'S REAL GDP DOWN 1.51% IN 2016.

For what is worth the Nigerian Bureau of Statistics has finally confirmed that the Nigerian economy contrasted in 2016 into recession.

According to real Gross Domestic Product (GDP) released today February 28, the nation:s real GDP declined by 1.51% in 2016 to N67,984.2bn.

In nominal terms however, because of increases in prices almost across the economy, GDP grew to N101,598.5bn from 2015,'s N94,145bn

The real GDP decrease is of course the first in years even though growth rate had not been consistently upwards since 2012.

Top growth in real GDP since 2012 remains 6.22%. In 2014 followed by 5.49% in 2013 and 4.21% in 2012.

Thus, the drop to only 2.79% growth in 2015 reversed the more consistent growth up to 2014. And with 2016 coming up with minus 1.51%, it shows decline rate is far ahead of the build up years to 2014.

The Bureau of statistics attributes this to increased oil pipeline vandalism, reduced foreign exchange reserves, energy supply and pricing issues, weaker demand due to inflation and backlog of unpaid salaries.

According to the NBS, the decline in 2016 fourth quarter was less sharp though with real GDP going down by 1.3% compared to 2015 fourth quarter.

It was also less severe when compared to the 2.24% recorded in the third quarter.

Agriculture declined slightly in the fourth quarter after real growth from quarter one to three.

Manufacturing recovered a little in fourth quarter while construction continued to crawl at bottom and Trade turned negative in terms of growth in third quarter and drop further in the fourth.

Much of the fourth quarter less severe decline was attributed to recovery in daily crude oil production to 1.9m barrels from quarter three's 1.65m and 1.69m average in quarter two.

But of course, quarter one's 2.31m daily average still remains a high point to strive for in 2017.

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