November 24, 2016/Cordros Research

Earlier this week, the National Bureau of Statistics (NBS) released Nigeria’s Gross Domestic Product (GDP) report for the third quarter ended September. According to the report, real output growth during the three months period slumped by 2.24% y/y (the biggest since -7.59% recorded in Q1-2004), representing 18bps and 508bps declines from growth rates of -2.06% and 2.84% recorded in the previous quarter and Q3-2015 respectively.

Although the insipid growth was widely expected, the contraction was bigger, overshooting Bloomberg-compiled median estimate of -2.05%, and consequently heralding the first three successive negative growths since 1987 (prior to rebasing).  Suffice to say that the sombre performance of the economy in the review period broadly accentuates the fact that legacy negative growth drivers have not been proactively responded to; in fact, structural and systemic challenges remain elevated.

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