Nigeria says economy shrank 1.51 pct in Q4 2016

By Rafiu Ajakaye

LAGOS, Nigeria

Nigeria’s economy shrank by 1.51 percent in the last quarter of 2016 with oil and non-oil sectors suffering persistent declines throughout the year, the country's bureau of statistics said in a report on Tuesday.

The National Bureau of Statistics said the decline was in contrast to GDP growth of 2.11 percent in the last quarter of 2015.

Analysts say the report means the country just suffered its worst economic recession since 1987 when the GDP shrank by 10.8 percent.

"This contraction reflects a difficult year for Nigeria, which included weaker inflation-induced consumption demand, an increase in pipeline vandalism, significantly reduced foreign reserves and a concomitantly weaker currency, and problems in the energy sector such as fuel shortages and lower electricity generation,” according to the report.

The economy officially went into recession in June but hopes of recovering before the year end did not materialize.

Regardless, the latest report showed that the decline of the fourth quarter was “less severe than the decline recorded in the previous [third] quarter, of -2.24 percent, but was nevertheless lower than the growth rate recorded in the final quarter of 2015, of 2.11 percent”.