Nigeria’s economy contracts 2.24% in Q3

According to data released by Nigeria’s National Bureau of Statistics, the country’s economy contracted by 2.24% on the year in the third quarter of this year due to the depreciating local currency, naira, and lower crude oil production because of ongoing militant attacks in the Niger Delta.

Nigeria has an oil-dependent economy and crude oil production accounts for around 70% of government revenue. The data showed that Nigeria’s crude oil production fell to 1.63 million barrels of oil per day (bpd), down around 22% from 2.17 million bpd in the same period of last year.

Meanwhile, an ongoing depreciation of the naira also put a cap on manufacturing activities in the country, which has led to a 2.9% contraction in manufacturing due to rising costs of manufacturers’ business operations.

According to the International Monetary Fund (IMF), the Nigerian economy will shrink by 1.7% this year.