RipplesMetrics...How Nigeria entered, exited recession (Animation) | Ripples Nigeria
Connect with us

Business

RipplesMetrics…How Nigeria entered, exited recession (Animation)

Published

on

Nigeria exits recession, as GDP grows by 0.11% in Q4 2020

On Thursday, the National Bureau of Statistics (NBS) released Nigeria’s Gross Domestic report to show how the economy had fared in 2020.

While some sectors recorded growth despite the challenges of the pandemic and an economic recession, some other sectors plunged, living workers in those sectors fearing for their jobs.

The NBS report shows that the full-year GDP contracted by 1.92 percent in 2020 from a growth of 2.27 recorded in 2019.

Within the year, the second and third quarter drove Nigeria into recession before a surprising rebound in the fourth quarter to 0.11 percent.

During the year, Ripples Nigeria observed the following sectors as the best and worst-performing sectors in 2020.

Quarrying and other Mineral sector

The Quarrying and other Mineral sector emerged the best performing sector in 2020, growing 21.16 percent.

Telecommunications and Information

The Telecommunications and Information sector took the second spot of top performers, growing by 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

Financial institutions emerged as the third best performing sector in 2020, growing by 13.34 percent compared to 2.24 percent in 2019.

Although the sector contracted 2.48 percent in the fourth quarter of 2020, the contraction was offset by the strong growth recorded in the other quarters.

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.

Broadcasting

This sector under the information and communications sector grew 4.85 percent in 2020 compared to 2.29 percent in 2019 and 4.42 percent in Q4’20.

The broadcasting sector alongside the telecommunication sectors were the only sectors that boosted the growth of the information and communications sector.

Read also: Nigeria exits recession, as GDP grows by 0.11% in Q4 2020

Motor vehicles and assembly

Motor vehicles and assembly recorded a growth of 4.03 percent, higher than 2.31 recorded in 2019 and 2.02 percent recorded in the fourth quarter of 2020.

This sector grew 1.04 percent, 6.95 percent, and 7.03 percent in the first, second, and third quarter of 2020.

Top five declining sectors

While some sectors stood resilient some other sectors in the economy could not withstand the pressure from the pandemic. These sectors were;

Oil refining

Oil refining 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.

Air Transport

The Covid-19 induced lockdown led to a contraction of 36.98 percent in air transport, waning from a growth of 13.17 percent in the year 2019.

Air transport recorded a 5.68 percent in the first quarter of 2020 after which it contracted by 57.38 percent, 38.86 percent and 51.69 percent in the second, third and fourth quarter respectively.

Rail Transport and Pipeline

Rail transport and pipeline also contracted by 33.64 percent in 2020 compared to 1.74 in 2019, and 11.99 in the fourth quarter of 2020.

Road Transport

Reeling from the effect of the pandemic, the road transport sector also contracted by 22.25 percent in 2020 compared to a growth of 11.24 percent in 2019, and 1.37 percent in Q4’2020.

Coal Mining

Coal Mining also contracted by 20.50 percent compared to a growth of 13.15 in the full year of 2019 and contracted 23.16 in the fourth quarter of 2020.

Join the conversation

Opinions

Join the conversation

Investigations

Sports

Latest Tech News

Copyright © 2021 Ripples Nigeria. All rights reserved.