Nigeria’s GDP Drops By 0.16bp To 1.94% In Q2’19 – NBS

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National Bureau of Statistics
National Bureau of Statistics

Nigeria’s Gross Domestic Product (GDP) in real term is said to have declined quarter-on quarter (QoQ) by 0.16 basis points to 1.94 percent in the second quarter of 2019 (Q2’19), the National Bureau of Statistics (NBS), Tuesday said.

The bureau said the GDP performance was aided by stability in oil output as well as the GDP.

It noted that the oil sector contributed 8.82 percent of total real GDP while the non-oil sector contributed 91.2 percent to the nation’s GDP during the period.

Data from the NBS GDP report for Q2’19 showed that in real terms, QoQ, real GDP declined by 0.16 basis point to 1.9 percent in the second quarter of 2019 (Q2’19) from 2.10 percent (revised from 2.01 percent due to oil output revisions) in Q1’19.

However, on yearly basis, GDP grew by 0.44 basis points to 1.94 percent in H1’19 from 1.50 percent in H1’2018.

The report read: “Nigeria’s GDP grew by 1.94 percent YoY in real terms in Q219. Compared to Q2’18, which recorded a growth of 1.50 percent, the growth observed in Q2’19 indicates an increase of 0.44 percent points.

When compared to 2.10 percent (revised from 2.01 percent due to oil output revisions) recorded in Q1’19 however, the Q2 2019 real growth rate indicates a decline of 0.16 percent points.

“During the quarter, aggregate GDP stood at N34.9 trillion in nominal terms, an increase of 13.83 percent over the performance in Q2’18 and 9.8 percent over the preceding quarter.

“The performance observed in Q2’19 follows an equally strong first quarter performance, and was likely aided by stability in oil output as well as the successful political transition. Overall, a total of 15 activities grew faster in Q2’19 relative to last year, while 13 activities had higher growth rates relative to the preceding quarter.

“On a half year basis, real growth in the first half of 2019 stood at 2.02 percent, higher than in 2018 which was 1.69 percent. “QoQ, real GDP increased by 2.85 percent compared to a decline of 13.69 percent in the preceding period.

For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors. “In Q2’19, Nigeria recorded average daily oil production of 1.98million barrels per day (mbpd), or 7.6 percent higher than the daily average production of 1.84mbpd recorded in the same quarter of 2018 but slightly less than output recorded in Q1’19 (1.99mbpd-revised from 1.96 mbpd).

“The oil sector posted a real growth rate of 5.15 percent (YoY) in Q2’19, representing a 9.10 percent points increase relative to the rate recorded in the corresponding quarter of 2018. It also indicates an increase of 6.61 percent points when compared to Q1’19(revised).’’

“Quarter-on-Quarter, the oil sector recorded a growth rate of –1.55 percent in Q2’19. The sector contributed 8.82 percent to total real GDP in Q2’19, up from levels recorded in the corresponding period of 2018 but down compared to the preceding quarter.

“The non-oil sector grew by 1.64 percent in real terms during the reference quarter. This was 0.40 percent points lower than recorded in the same quarter of 2018, and 0.83 percent point lower than the first quarter of 2019.

“During the quarter, the sector was driven mainly by Information and communication, Mining and Quarrying, Agriculture, Transportation and Storage, as well as Other Services.

“In real terms, the Non-Oil sector contributed 91.18 percent to the nation’s GDP, lower than the share recorded in the second quarter of 2018 (91.45 percent) but higher than the first quarter of 2019 (90.78 percent).”

(Vanguard)