Nigeria's Economy in 2016 Shrank for the First time in 25 Years

The National Bureau of Statistics, NBS, on Tuesday said Nigeria's economy contracted 1.5 percent in 2016 due to lower oil revenues and a shortage of hard currency.

This will be the country's first annual contraction in the quarter of a century.

"This contraction reflects a difficult year for Nigeria, which included weaker inflation-induced consumption demand, an increase in pipeline vandalism, significantly reduced foreign reserves and a concomitantly weaker currency," NBS said in a report.

The fourth quarter output shrank by 1.3 percent, it added.

Nigeria slid into recession in the second quarter of 2016 as a slump in crude prices hammered the nation's public finances and battered the naira.