Economic Recession: FG’s non-oil revenue shrinks by N134bn

The current economic challenges facing the country have taken its toll on the non-oil sector as earnings from exporters witnessed a decline of $438.82m in the second quarter from $1.02bn recorded in the first quarter of this year to $576.97m. When converted based on the official N305 exchange rate of the Central Bank of Nigeria, the $438.82m translates to a total of N133.8bn.Statistics obtained from the CBN revealed that the decline of $438.82m (N133.8bn) by the sector represented a drop of 43.2 percent when compared to the amount earned within the first quarter of the year.The decline in earnings from the non-oil products, according to finance experts, is a reflection of the significant drop in economic activities occasioned by the fall in productive capacities of industrialists.The National Bureau of Statistics had last Wednesday released the Gross Domestic Product figures for the second quarter of 2016 with the GDP growth rate sliding from -0.36 percent in the first quarter to -2.06 per cent year-on-year.It also released the capital importation report for the second quarter, the unemployment statistics report, the inflation report for the month of July and the labour productivity report for the month of July, all of which painted a negative picture of the Nigerian economy. Specifically, the inflation rose as high as 17.1 per cent from 16.5 per cent; the unemployment rate increased to 13.3 per cent from 12.1 per cent, and investment inflows dropped to its lowest level at $647.1m from $710m.A recession is defined as a significant decline in activities across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade.The technical indicator of a recession is two consecutive quarters of a negative economic growth as measured by a country’s GDP.