Nigeria GDP drops to 1.5% Q2 2018

National Bureau of Statistics (NBS) has said that the monetary value of the goods and service produced within the Nigerian economy GDP, in the second quartet of 2018 grew by 1.50 per cent (year-on-year) in real terms to N16.58trillion. Growth in Q2 2018 was 0.79 per cent points higher when compared to the second quarter of 2017 which recorded a growth of 0.72 per cent, but –0.45 per cent points slower than 1.95 per cent recorded in the first quarter of 2018. On a quarter on quarter basis, real GDP growth was 2.94 per cent.

In the quarter under review, aggregate GDP stood at N30.69trillion in nominal terms. This represents a 7.85 per cent increase in nominal GDP when compared to the preceding quarter (N28.46trillion) and 13.57 per cent increase when compared to the corresponding quarter of 2017 (N27.03trillion). For better clarity, the Nigerian economy can be classified broadly into the oil and non-oil sectors . Broadly speaking, growth in Q2 2018 was driven by developments in the non-oil sector as Services sector recorded its strongest positive growth since 2016. However, the relatively slower growth when compared to Q1 2018 and Q2 2017 could be attributed to developments in both the oil and non-oil sectors.

NBS in its report said “Non-oil GDP growth was -0.18 per cent in Q1 2016, -0.38 per cent in Q2 2016, 0.03 per cent in Q3 2016, -0.33 per cent in Q4 2016, 0.72 per cent in Q1 2017, 0.45 per cent in Q2 2017, -0.76 per cent in Q3 2017, 1.45 per cent in Q4 2017and 0.76 per cent Q1 2018. “GDP grew strongly in Q2 2018 by 2.05 per cent. Non-oil growth was driven by transportation which grew by 21.76 per cent supported by growth in construction which grew by 7.66 per cent and electricity which grew by 7.59 per cent.

Other non-oil sectors that drove growth in Q2 2018 include telecommunication which grew by 11.51 per cent, water supply and sewage which grew by 11.98 per cent and broadcasting which grew by 21.92 per cent.’’ The non-oil sector performance was however constrained by agriculture that grew by 1.3 per cent compared to 3.00 per cent in Q1 2018 and 3.01 per cent in Q2 2017. Q2 2018 GDP growth was also constrained by oil GDP with crude oil and gas production contracting by -3.95 per cent compared to 14.77 per cent in Q1 2018 and 3.53 per cent in Q2 2017 Services GDP recorded its best performance in 9 quarters, growing by 2.12 per cent in Q2 2018 compared to -0.47 per cent in Q1 2018 and -0.85% in Q2 2017.