Against the backdrop of global economic strains resulting from COVID-19 pandemic, Nigeria’s Gross Domestic Product (GDP), grew by 1.87% Year on Year (YoY) in real terms, according to the data published by the Nigerian Bureau of Statistics (NBS).

The performance recorded in Q1 2020, represents a drop of -0.23% points compared to Q1 2019 and -0.68% points compared to Q4 2019, reflecting the earliest effects of the disruption, particularly on the non-oil economy. Quarter on quarter, real GDP growth was -14.27% compared to 5.59% recorded in the Q4 2019.

The oil sector performance stood at average daily production of 2.07 million barrels per day (mbpd). The production level was higher than the 1.99mbpd recorded in the same quarter of 2019 by 0.08mbpd and the fourth quarter of 2019 by 0.06mbpd.

There was a record of real growth rate of 5.06% yoy in the Q1 2020, indicating an increase of 6.51% points relative to the rate recorded in the corresponding quarter of 2019. However, there was -1.30% points decrease compared to Q4 2019 which was 6.36%. Quarter-on-quarter, the oil sector recorded a growth rate of 11.30% in Q1 2020.

Consequently, the non-oil sector added 1.55% growth in real terms in Q1 2020. That’s -0.93% points slower compared to the same quarter in 2019, and -072% slower than the Q4 of 2019.

The non-oil sector was sparked mainly by telecommunications, finance, agriculture, mining and quarrying and construction. The non-oil sector contributed 90.50% to the nation’s GDP in Q1 2020, in real terms, compared to 90.78% of the same quarter in the preceding year, and 92.68% in the Q4. Road transport, quarrying, accommodation, real estate and food services recorded the lowest performance.

In the mining and quarrying sector, which consists of crude petroleum and natural gas, coal mining, metal ore and other minerals, there was a nominal growth of -10.57% yoy in Q1 2020. While metal ore recorded the highest growth rate of all sub-activities at 8.72%, followed by crude petroleum and natural gas activity which stood at -10.20%, it was crude petroleum and natural gas that contributed most to the sector with 99.51% growth in the Q1 2020.

The mining and quarrying sector grew in real terms by 4.58% yoy, compared to the same quarter of 2019, the Q1 2020 was higher by 5.95% points but lower by -1.49% points when compared to Q4 2019. The quarter on quarter growth recorded stood at 9.36%. The total contribution of mining and quarrying to the real GDP was 9.54% for Q1 2020.

In the agricultural sector, there was a 22.47% yoy growth in nominal terms in the Q1 2020, indicating a decline of -0.11% points from the same quarter in 2019. The sector recorded an increase of 8.66% points when compared to the 13.80% growth rate of Q4 2019. Crop production accounted for 90.54% of overall nominal growth in the sector. Quarter on quarter growth stood at -19.58% in Q1 2020. The agricultural sector contributed 20.88% to nominal GDP in the Q1 of 2020.

The agricultural sector grew by 2.20% year on year in the first quarter of 2020, in real terms, indicating a -0.97% points compared to the same quarter in 2019. On a quarter on quarter basis, the real agriculture sector growth was -27.81%. The sector made 21.96% contribution to overall GDP in real terms in Q1 2020.

Information and communication sector’s growth stood at 8.94% in nominal terms yoy, a -2.51% points decrease from the rate of 11.45% recorded in the same quarter of 2019, and -0.93% points lower than the rate recorded in the preceding quarter. There was a -7.20% quarter on quarter growth in the first quarter of 2020.

The information and communication sector contributed 10.31% to total nominal GDP in the Q1 2020, lower than the rate of 10.60% recorded in the same quarter of 2019. In the first quarter of 2020, the information and communications sector recorded a growth rate of 7.65% in real terms, yoy. Compared to the same period of the preceding year, there’s a decrease of -1.84% points. Quarter on quarter growth stood at -8.02% in real terms. The sector contributed 14.07% to total real GDP in Q1 2020.

The increase recorded in most of the sectors contributed to the 1.87% GDP growth, but compared to the preceding year, the Q1 2020 has underperformed, mainly, due to the decline in oil price and events that the year 2020 was ushered in with.

With this scorecard, the second quarter of the year will undoubtedly yield negative growth due to the impact of the coronavirus crisis. The International Monetary Fund (IMF)  said Nigeria should brace up for its worst recession.

In the latest move, the National Cyber Security Center (NCSC) has launched an emergency review of the UK’s contract with Huawei for 5G roll out. The NCSC is expected to find out if Huawei could still be allowed to continue with the planned deployment of its technologies in providing 5G services in the UK.

The review was announced on Sunday as part of Downing Street’s push to eliminate Huawei’s involvement in the activities of the 5G network in the UK.

The UK government has been under intense pressure from the US government to sever ties with the Chinese Company. The pressure was intensified earlier this year with the Trump administration threatening to stop intelligence sharing with London if it continues its relationship with Huawei.

London has been adamant to push Huawei away due the cost of 5G roll out. Huawei offers the cheapest services available in 5G deployment and has used it to keep a lot of customers in their grip. The UK believes it will cost the government more to switch to another company right now.

But the latest sanction announced by the US government against Huawei that requires that chip and semiconductor producers in the US stop supplying Huawei with telecommunication components, has necessitated the emergency review and created a fresh ground for the UK authorities to oust the Chinese company.

Now, the new turn is coming from Downing Street, pushing to see that Huawei is eliminated from all British telecommunication by 2023.

According to Guardian, it was suggested on Friday that Downing Street is preparing the ground for a dramatic climbdown. A government spokesman was quoted as saying: “Following the US announcement of additional sanctions against Huawei, the NCSC is looking carefully at any impact they could have to the UK’s networks.”

The new US sanction billed to take effect from September means Huawei has only China to source chips and semiconductors from. And that’s where the concern lies. London believes the situation increases the chances of security breaches and requires urgent attention.

Guardian reported Whitehall sources saying that the effect of the US sanctions will mean that Huawei will rely on unfamiliar and untested components that could be exploited. And that makes the security threat it will pose inevitable.

Moreover, the coronavirus pandemic has put a strain on the relationship between china and the United Kingdom. The British government has suspected that the Chinese government has a hand in the outbreak of the virus, and they are not being honest about it. The situation has dampened the UK’s determination to allow Huawei to lead its 5G roll out.

The sanction will mean that Huawei’s lead in global 5G deployment will suffer a severe setback, and Ericsson of Sweden and Nokia of Finland may see themselves dominating the 5G market.

Conservatives MPs, led by Sir Iain Duncan Smith and Bob Seely have been pushing for the reduction of Huawei’s involvement in the UK’s 5G deployment to zero. Spurred by US pressure and lack of trust in China, the duo believe they now have the numbers to stop the British government from legislating for a 35% cap on Huawei in Britain.

The opposition to Huawei’s participation in the UK’s 5G deployment is increasing daily, and will likely rise to the numbers needed to oust Huawei in coming weeks. Seely reportedly tweeted, “now 59 MPs” on Sunday. Meaning that the Conservative Huawei Interest Group, has beaten the numbers (44) required to defeat Boris Johnson and the Tories to it, though they are the majority.

With intensifying pressure within and outside Britain, it may be game over for Huawei. Mathew Henderson, director of the Asia Studies Center the Henry Jackson Society said the push for a review is evidence that the government’s previous position was untenable.

“This review is recognition that the government’s previous position on Huawei was untenable, both due to the scale of opposition in parliament and from our allies,” he said.

Huawei has repeatedly pledged to be transparent in its business and operate independently from the influence of the Chinese Communist Party. Its vice chairman Victor Zhang said they will be glad to discuss the issue with NCSC.

“We are happy to discuss with NCSC any concerns they may have and hope to continue the close working relationship we have enjoyed for the last 10 years.”