By Dipo Olowookere
The Nigerian economy has officially gone into recession, Business Post has learnt. Few weeks ago, South Africa took over from Nigeria as Africa’s biggest economy.
According to figures released by the National Bureau of Statistics (NBS), the second quarter of 2016 has shown a contraction of 2 percent in the economy.
It further disclosed that Nigeria’s economy shrank by 0.36 percent in the first quarter of 2016, to hit its lowest point in 25 years.
Since the price of oil dropped in the international market in 2015, Nigeria’s economy has struggled to breath.
Nigeria’s major source of foreign exchange earnings is oil, contributing over 70 percent to the economy. Only now has the government clamoured more on diversification of the economy, also urging Nigerians to patronise locally made goods.
Last month, the Minister of Finance, Mrs Kemi Adeosun, told Nigerians that the economy was only technically in recession.
But the latest development will not come as a surprise to many Nigerians, who have maintained that the country’s economy was in depression.