Nigerian economy grows by 1.9% in 2018, oil production drops to 1.91mbpd

Nigeria’s economy grew in 2018 at its fastest pace since a recession two years earlier, Dr. Yemi Kale, Statistician-General, National Bureau of Statistics said in the latest report on the Nigerian economy by National Bureau of Statistics. Kale the report said “in the fourth quarter of 2018, Nigeria’s Gross Domestic Product (GDP) grew by 2.38 per cent in real terms (year on-year). This represents an increase of 0.27 per cent points when compared to the fourth quarter of 2017 which recorded a growth rate of 2.11 per cent. It also indicates a rise of 0.55 per cent points when compared with the growth rate recorded in Q3 2018. 

“On a quarter on quarter basis, real GDP growth was 5.31 per cent. The fourth quarter growth performance implies that real GDP grew at an annual growth rate of 1.93 per cent in 2018, compared to 0.82 per cent recorded in 2017, an increase of 1.09 per cent points. During the quarter, aggregate nominal GDP stood at N35,230,607.63 million, which is higher than N31,275,354.08 million recorded in Q4 2017, a nominal growth rate of 12.65 per cent. For 2018, nominal GDP was therefore recorded at N127,762,545.58million representing a nominal growth rate of 12.36 per cent when compared to N113,711,634.61million recorded in 2017. Gross domestic product grew by 1.93 percent last year, up from 0.82 percent in 2017 and just short of the government’s 2 percent projection, the National Bureau of Statistics said. It grew 2.4 per cent in the fourth quarter.”

According to Kale “in the fourth quarter of 2018, average daily oil production stood at 1.91 million barrels per day (mbpd). This was lower than the 1.95 mbpd recorded in the same quarter of 2017, and 1.94 mbpd in Q3 2018. The oil sector recorded a real GDP growth rate of -1.62 per cent (year-on-year) in Q4 2018, indicating a decline of -12.81 per cent points relative to the growth rate recorded in the corresponding quarter of 2017. However, when compared to Q3 2018, growth increased by 1.29 per cent points. On an annual basis, real GDP growth for the oil sector stood at 1.14 per cent as against 4.69 per cent recorded in 2017. The Oil sector contributed 7.06 per cent to real GDP in Q4 2018, down from figures recorded in the corresponding period of 2017 and the preceding quarter, where it contributed 7.35 per cent and 9.38 per cent respectively. For 2018, the contribution of the oil sector to aggregate real GDP was 8.60 per cent, slightly lower when compared with 8.67 per cent in 2017. The oil sector recorded a real GDP growth rate of -1.62 per cent (year-on-year)in Q4 2018, indicating a decline of  -12.81 per cent points relative to the growth rate recorded in the corresponding quarter of 2017. However, when compared to Q3 2018, growth increased by 1.29 per cent points. On an annual basis, real GDP growth for the oil sector stood at 1.14 per cent as against 4.69 per cent recorded in 2017”. 

Kale further said that “the Oil sector contributed 7.06 per cent to real GDP in Q4 2018, down from figures recorded in the corresponding period of 2017 and the preceding quarter, where it contributed 7.35 per cent and 9.38 per cent respectively. For 2018, the contribution of the oil sector to aggregate real GDP was 8.60 per cent, slightly lower when compared with 8.67 per cent in 2017”. 

According to him “the non-oil sector grew by 2.70 per cent in real terms during the fourth quarter of 2018.  This is 1.25 per cent points higher than the growth rate recorded in Q4 2017, and 0.38 per cent points higher than the growth rate recorded in Q3 2018. On an annual basis, the non-oil sector recorded a growth rate of 2.00 per cent in 2018, performing considerably better than 0.47 per cent seen in 2017. The key performing activities during the quarter were Information and communication, Transportation & Storage, Arts & Entertainment, Agriculture and Manufacturing. The Non-Oil sector contributed 92.94% to real GDP in the fourth quarter of 2018, slightly higher than the 92.65% seen in Q4 2017. For 2018, annual contribution was recorded at 91.40% against 91.33% in year 2017. Key performing activities on an annual basis include Transport, Information & Communication, Electricity, Water, as well as Arts & Entertainment”. 

 

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