Business

Nigeria’s Oil Falls, Records Negative Growth

Published

5 years ago

August 26, 2020

Amid the collapse of oil prices and demand, Nigeria’s oil and gas sector saw its contribution to the economy tumble in the second quarter of this year as it recorded negative growth.

For the first time in more than three years, the nation’s economy shrank in Q2 2020 as the Gross Domestic Product fell by 6.10 per cent, compared to a growth of 1.87 per cent in the previous quarter.

The NBS, in its GDP report for the second quarter of the year, said the oil sector, which grew by 5.06 per cent in Q1, declined by 6.63 per cent year-on-year in Q2, indicating a decrease of 13.80 per cent compared to the same period of 2019.

“The oil sector contributed 8.93 per cent to total real GDP in Q2 2020, down from figures recorded in the corresponding period of 2019 and the preceding quarter, where it contributed 8.98 per cent and 9.50 per cent respectively,” it said.

The NBS said the average daily oil production in the country fell to 1.81 million barrels per day in Q2 from 2.07 million bpd in the previous quarter and 2.02 million bpd in Q2 2019.

The Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, agreed in April to an output cut to offset a slump in demand and prices caused by the coronavirus crisis.

They decided to cut supply by a record 9.7 million bpd for May and June but the deal was extended in July by one month.

Under the April deal, Nigeria was expected to cap its production at 1.41 million bpd in May and June but the country overproduced during the period.

The Lagos Chamber of Commerce and Industry attributed the low level of crude production in the period under review to OPEC+ production cut agreement aimed at rebalancing the oil market.

The LCCI said, “We also note that the economy experienced stockpiles of unsold crude cargoes particularly in April and early May, due to collapse in crude demand from Asia and Europe.

“In addition to these, the steep contraction was also fuelled by weakening oil prices witnessed in the quarter. We note that oil prices averaged $33 per barrel in Q2 2020 compared to $51 per barrel in the first quarter.”

The OPEC+ production cuts have helped lift the price of the international oil benchmark, Brent crude, from a low of around $16 per barrel in April. It stood at $45.91 per barrel as of 6:45pm Nigeria time on Tuesday.

The Director-General, Budget Office of the Federation, Ben Akabueze, had said in May that the nation’s oil revenues had declined by nearly 90 per cent amid the slump in prices caused by the coronavirus pandemic.

He noted that prior to the oil price decline, the Nigerian economy was already fragile and vulnerable, with sluggish growth, low revenue to GDP ratio, constrained fiscal space, among others.

According to him, oil and gas represents only about 10 per cent of Nigeria’s GDP, but accounts for about 50 per cent of government revenues and over 90 per cent of export earnings.

The contribution of the power sector to the economy also suffered a decline in Q2.

According to the NBS, the electricity, gas, steam and air conditioning supply sector recorded a year-on-year growth of 8.64 per cent in Q2 2020, down from the 29.75 per cent growth rate recorded in same period of 2019 and 17.51 per cent in Q1 2020.

It said, “The contribution of electricity, gas, steam and air conditioning supply to nominal GDP in second quarter 2020 was 0.92 per cent, higher than the contribution made in the corresponding quarter of 2019 at 0.82 per cent and higher with its contribution of 0.38 per cent in the quarter before.”

“In real terms, however, the sector declined by –3.00 per cent in Q2 2020, a decrease from the growth rate of 0.43 per cent recorded in the same quarter of 2019. When compared to the immediate past quarter, this was a decrease of –0.69 per cent.”

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Business

FG, Investonaire Academy Unveil National Programme to Equip 100,000 Youths with Financial Skills, Digital Wealth Tools

Published

5 days ago

November 25, 2025

The Gleamer

By Joel Ajayi

The Federal Government, in collaboration with Investonaire Academy, has unveiled a nationwide financial literacy and wealth-building programme targeting more than 100,000 young Nigerians. The initiative is designed to equip participants with practical skills in budgeting, saving, investing, asset building, and long-term financial planning, positioning them for sustainable prosperity in a rapidly evolving economy.

Launched on Tuesday in Abuja, the Honourable Minister of Youth Development, Comrade Ayodele Olawande, described financial literacy as a necessary survival tool for young people confronting today’s economic realities.

He noted that the initiative represents the foundation of a broader vision expected to extend beyond Nigeria to other African nations and global markets.

Reaffirming the Federal Government’s commitment to supporting over 4,000 corps members annually, the Minister said the programme will provide platforms, resources, and skills needed for both job creation and employability.

“The young people who understand money — how to save, invest, build assets, and manage risk — are the ones who will lead Nigeria into prosperity,” he said.

A major highlight of the launch was the expansion of the Nigeria Youth Academy, a digital platform offering mentorship, training, and startup support. According to the Minister, more than 200 startups will receive empowerment through the Academy’s e-app platform before the end of the year.

He stressed the need for deeper collaboration with private organisations, innovators, and youth-focused groups, noting that government alone cannot drive youth development. He further encouraged young Nigerians to embrace skills acquisition, innovation, and digital enterprise, saying these remain critical to reducing the desire for migration and increasing self-reliance.

Outlining the Ministry’s long-term commitments, Olawande emphasized three priorities: supporting youth innovation, equipping them with growth tools, and safeguarding millions of Nigerian youths under the Ministry’s mandate.

Speaking at the launch, Sebastien Sicre, Chief Operating Officer of Investonaire Academy, said the programme was crafted to revolutionize the way Nigerian youths learn and apply financial knowledge. He highlighted the Academy’s gamified Learning Management System (LMS), which offers interactive learning tools, community forums, and real-time mentorship to make financial education engaging and accessible.

Complementing the digital platform is a new 200-square-metre physical training centre in Abuja, opposite the NNPC Towers, where in-person workshops and mentorship sessions will take place.

The curriculum covers key global asset classes — including equities, commodities, forex, and indices — ensuring participants gain a broad understanding of financial markets.

Sicre added that with Federal Government backing, the programme seeks to unlock new opportunities, strengthen youth participation in the digital economy, and reward outstanding participants through a $1 million funding pool to support new and existing ventures.

International Programme Director of Investonaire Academy, Dr. Enefola Odiba, explained that the initiative aims to bridge long-standing gaps in financial education among Nigerian youths. While schools teach many subjects, he said, essential financial skills are often missing.

“Many people can earn money — earning money can be easy. The real challenge is retaining, managing, and growing that money,” he noted.
Referencing the Central Bank of Nigeria’s definition of financial literacy, Odiba stated that implementation remains a major national challenge. He said the initiative brings together government agencies, youth groups, academic institutions, and private-sector partners to translate strategy into measurable impact.

The programme’s curriculum covers budgeting, saving, investing, and financial planning — areas where many young people struggle. By offering practical training, real-world insights, and guided mentorship, the initiative aims to build a generation of financially empowered youth capable of driving innovation, entrepreneurship, and sustainable economic growth.

With this partnership, the Federal Government and Investonaire Academy share a common goal: to empower young Nigerians with the financial intelligence and digital tools needed to build wealth, grow businesses, and transform the nation’s economic future.

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