2017 GDP: Metal Ore tops highest performing sector

The Nigerian Bureau of Statistics (NBS) on Tuesday, released the GDP numbers for year 2017.

The FY-17 growth came in at a positive 0.83 per cent amid stronger agriculture sector output, rebound in oil output and FX stability.

But, a sectoral analysis released by United Capital (UCAP) on Thursday reveal that the Metal Ores sub-sector recorded the highest growth in 2017.

The sub-sector grew by 21.4 per cent in FY-17 and has remained the fastest growing since Q1-16, quarter on quarter (q/q) growth average of 20.0 per cent over the last 8-quarters.

Electricity, Gas, Steam & Air Conditioning Supplies came next, posting a growth of 16 per cent in FY-17.

The sub-sector’s q/q growth averaged 14.5 per cent in 2017. Road Transport sub-sector made a surprising entry, with a 4.8 per cent growth in 2017, after jumping 19.7 per cent in Q4-17 while Crude Oil & Natural Gas expectedly jumped out as one of the fastest growing sectors with a 4.5 per cent growth in FY-17 and 8. per cent per cent in Q4-17.

Three worst performing sectors in 2017 were, Oil Refining that recorded a decline of 27.7 per cent, Motor Vehicle & Assembly down 21. per cent and Other Manufacturing, which fell 7. per cent. Other notable sectors with poor performance in 2017 included Real Estate (-4.3 per cent), Insurance (-2.9 per cent) and Trade (-1.1 per cent).

According to UCAP, the GDP numbers suggest that recovery in the Nigerian economy is seemingly tilted in favour Agriculture and Mining, reflecting the feedback effect of favourable policy efforts from the authorities, especially in the Mineral Mining, Oil & Gas as well as the Agric sectors.

‘Contrariwise, the dearth of favourable policy initiatives in the Industrial sector is reflected in the continued underwhelming performance of the sector.’ The investment firm noted.