LCCI expresses concern on decline in national output in Q2-2020
Director General, LCCI, Dr Muda Yusuf
The Lagos Chamber of Commerce and Industry (LCCI) has noted with concern the decline in national output in second quarter of 2020.
According to the GDP report by the National Bureau of Statistics, the economy contracted by a record 6.1 percent in the second quarter, and this marks the steepest quarterly contraction in Nigeria’s recent economic history.
The contraction in Q2-2020 also ended the three-year trend of marginal but positive growth era the Nigerian economy had after exiting recession in Q2-2017.
The 6.1 percent contraction is not a surprise as the number reflects the profound impact of the covid-19 pandemic on the Nigerian economy.
The Director General, LCCI, Dr Muda Yusuf, while commenting on 2020 second quarter Gross Domestic Product (GDP) report yesterday, noted that the containment measures including lockdown, national curfews, inter-state travel bans, closure of schools, airlines, businesses imposed globally and domestically to slow the spread of the pandemic, significantly disrupted global supply chains and destabilized commercial, business, investment, and trade activities.
In addition to these, he stated, “it was also in the second quarter that the country was confronted with weakening oil prices, low crude production, huge volume of unsold crude cargoes, foreign exchange scarcity, depleting external reserves, portfolio outflows in the financial markets, disruption & adjustment of the 2020 budget, revenue collapse from oil and non-oil sources, rising spate of job losses, high food prices, among others.”
On sectional performance, he said “We note the weak performance of the economy at sectoral level, particularly among critical sectors with potentials to facilitate economic diversification. While some sectors did expand in the second quarter, most of the sectors that reported positive growth in the first quarter plunged into sharp contraction while others maintained their position in recessionary territory.
“In all, 46 sectors, 19 sectors contracted; 14 sectors are in recession, 11 sectors expanded, and two sectors reported slowdown in growth.”
