Despite oil sector growth, Nigeria’s GDP slows by 0.16% in Q2 2019 – NBS
Despite a real oil sector growth rate of 5.15 per cent in second quarter of 2019, Nigeria’s Gross Domestic Product has reduced to 1.94 per cent.
The decline was recorded despite a real growth rate of 5.15 per cent posted by the oil sector (year-on-year) in the Q2 2019, according to the National Bureau of Statistics (NBS).
According to the second-quarter GDP report by the NBS, GDP slowed by 0.16 percentage points lower than the 2.10 per cent recorded in the first quarter of 2019.
A breakdown of the report by the Bureau shows that the oil sector posted 5.15 per cent growth in Q2 2019, compared to a negative figure of 1.46 per cent in Q1. The non-oil sector posted a lower growth figure in Q2 of 1.64 per cent compared to 2.47 per cent in Q1.
Components of the non-oil sector that contributed to the slowdown include Agriculture, which saw its growth fall to 1.79 per cent in Q2 from 3.17 per cent in Q1, Manufacturing, which contracted into negative territory of 0.13 per cent in Q2 from positive growth of 0.81 per cent in Q1, as well as transportation and storage which fell to 8.02 per cent in Q2 vs 21.48 per cent in Q1, among others.
According to the report, the 2.01 per cent GDP figure announced in May has been revised to 2.10 per cent.
In the fourth quarter of 2018, the GDP figure was computed at 2.38 per cent.
The oil sector growth indicates an increase of 6.61 per cent points when compared to Q1 2019 after its revision.
“The sector contributed 8.82 percent to total real GDP in Q2 2019, up from levels recorded in the corresponding period of 2018 but down compared to the preceding quarter.
“In Q2 2019, Nigeria recorded average daily oil production of 1.98 million barrels per day (mbpd), or 7.6 per cent higher than the daily average production of 1.84mbpd recorded in the same quarter of 2018 but slightly less than output recorded in Q1 2019 (1.99mbpd-revised from 1.96 mbpd),” the report said.
According to the NBS, the non-oil sector grew by 1.64 per cent in real terms during the reference quarter. This was –0.40 per cent points lower than recorded in the same quarter of 2018, and -0.83 per cent point lower than the first quarter of 2019.
The apex statistic body of the country also noted that the performance observed in the second quarter of 2019 follows an equally strong first-quarter performance, which was possibly facilitated by stability in oil output as well as the smooth transition of power.
