Nigeria’s GDP Falls to 1.95%

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By Joseph INOKOTONG

Nigeria’s Gross Domestic Product (GDP) grew by 1.95% (year-on-year) in real terms in the first quarter of 2018, but shows a decline of -0.16% when compared to 2.11% recorded in in the preceding quarter.
Data released Monday, by the National Bureau of Statistics (NBS) said the figure shows a stronger growth when compared with the first quarter of 2017 which recorded a growth of –0.91% indicating an increase of 2.87% points.
The NBS notef that quarter on quarter, real GDP growth was –13.40%.
In the first quarter of 2018, aggregate GDP stood at N28,464,322.01 million in nominal terms. This

performance is higher when compared to the first quarter of 2017 which recorded a nominal GDP

aggregate of N26,028,356.03 million thus, presenting a positive year on year nominal growth rate of 9.36%.

This rate of growth is however lower relative to growth recorded in Q1 2017 by –7.70% points at 17.06%

but higher than the proceeding quarter by 2.14% points at 7.22%. To give a clearer depiction, the Nigerian economy has been classified broadly into the oil and non-oil sectors.

The Information and Communication sector which is composed of the four activities of Telecommunications and Information Services; Publishing; Motion Picture, Sound Recording and Music Production; and Broadcasting also recorded impressive result within the quarter.

In nominal terms, the first quarter of 2018 saw the sector grow by 1.79% (year-on-year), a 7.25% points

decrease from the rate of 9.04% recorded in the same quarter of 2017. However, it is 2.34% points higher than rate recorded in the preceding quarter. The Quarter on Quarter growth rate was –3.58%. The Information and Communications sector contributed 10.64% to total Nominal GDP in the 2018 first quarter, lower than the rate of 11.43% recorded in the same quarter of 2017 but higher than the 10.04% it contributed in the preceding quarter.

The sector in the first quarter of 2018 recorded a growth rate of 1.58% in real terms, year on year. From the rate recorded in the corresponding period of 2017, there was a decline by 1.15% points. Quarter on Quarter, the sector exhibited a growth of –4.15% in real terms. Of total real GDP, the sector contributed 12.41% in 2018 first quarter, lower than in the same quarter of the previous year in which it represented 12.46% but higher than the preceding quarter, in which it represented 11.35%.

Nominal growth in the Arts, Entertainment and Recreation sector was 0.41% in first quarter 2018 (year-on-year), representing a decrease of 21.06% points relative to the same period a year earlier, and a decrease of 3.76% points compared with the preceding quarter. On a quarterly basis, growth was recorded at 31.51%, higher than quarter-on-quarter growth of Q4 2017 recorded at 9.54%. The activity contributed 0.28% to total nominal GDP in first quarter 2018, lower than the 0.31% it contributed in Q1 2017 and higher than 0.20% it contributed in fourth quarter of 2017.

In real terms, the activity grew by 0.30% year on year, which was lower than the rate recorded in Q1 2017 by 11.37% points, and lower by 3.24% points when compared with that of the preceding quarter. Quarter on Quarter, growth stood at 31.51% in real terms, higher than quarter-on-quarter growth recorded in Q4 2017 at 9.54%. Arts, Entertainment and Recreation contributed 0.29% to real GDP in Q1 2018, slightly lower than the 0.30% recorded one year before, but higher than 0.19% recorded in the fourth quarter of 2017 by Nigeria’s Gross Domestic Product (GDP) grew by 1.95% (year-on-year) in real terms in the first quarter of 2018. This shows a stronger growth when compared with the first quarter of 2017 which recorded a growth of –0.91% indicating an increase of 2.87% points. Compared to the preceding quarter, there was a decline of –0.16% points from 2.11%. Quarter on quarter, real GDP growth was –13.40%.

Still on the first quarter of 2018, aggregate GDP stood at N28,464,322.01 million in nominal terms. This

performance is higher when compared to the first quarter of 2017 which recorded a nominal GDP

aggregate of N26,028,356.03 million thus, presenting a positive year on year nominal growth rate of 9.36%.

This rate of growth is however lower relative to growth recorded in Q1 2017 by –7.70% points at 17.06%

but higher than the proceeding quarter by 2.14% points at 7.22%. To give a clearer depiction, the Nigerian economy has been classified broadly into the oil and non-oil sectors.

In the period under review, the nation recorded an average daily oil production of 2.0 million barrels per day (mbpd),higher than the daily average production recorded in the fourth quarter of 2017 by 0.05 mbpd.

Real growth of the oil sector was 14.77% (year-on-year) in Q1 2018. This represents an increase of 30.37% points relative to rate recorded in the corresponding quarter of 2017. Quarter-on-Quarter, the oil sector grew by 13.24% in Q1 2018.

The Oil sector contributed 9.61% to total real GDP in Q1 2018, up from 8.53% and 7.35% recorded in the Q1 2017 and Q4 2017, respectively.