NIGERIA’S Gross Domestic Product (GDP) grew by 2.38 percent in real terms (year-on-year). This represents an increase of 0.27 percent points when compared to the fourth quarter of 2017 which recorded a growth rate of 2.11 percent, according to the National Bureau of Statistics.
This also means that the GDP increased by 0.55 percentage points when compared with the growth rate recorded in the third quarter of 2018.
“On a quarter on quarter basis, real GDP growth was 5.31 percent,” a report released by the NBS on Tuesday read.
“The fourth quarter growth performance implies that real GDP grew at an annual growth rate of 1.93 percent in 2018 compared to 0.82 percent recorded in 2017, an increase of 1.09 percent points.
“During the quarter in review, 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 percent.
For 2018, nominal GDP was therefore recorded at N127,762,545.58 million representing a nominal growth rate of 12.36 percent when compared to N113,711,634.61million recorded in 2017.
According to the NBS report, oil production fell to 1.91 barrels per day during the period in review, as against the 1.95 bpd recorded in the same quarter in 2017.
The oil sector recorded a real GDP growth rate of –1.62 percent in Q4 2018, a decline of –12.81 percentage points when compared to the same period quarter of 2017. However, compared to Q3 2018, the oil sector grew by 1.29 percentage points.
“On an annual basis, real GDP growth for the oil sector stood at 1.14 percent as against 4.69 percent recorded in 2017,” the report, signed by Yemi Kale, Nigeria’s Statistician General, stated.
However, non-oil revenue rose by 2.70 percent in real terms during the Q4 2018, an increase of 1.25 percentage points higher than the growth rate recorded in Q4 2017, and 0.38 percentage points higher than that of Q3 2018.
“On an annual basis, the non-oil sector recorded a growth rate of 2.00 percent in 2018, performing
considerably better than 0.47 percent seen in 2017,” the NBS reported.
“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 percent to real GDP in the fourth quarter of 2018, slightly higher than the 92.65 percent seen in Q4 2017.
“For 2018, an annual contribution was recorded at 91.40 percent against 91.33 percent in the year 2017.
Key performing activities on an annual basis include Transport, Information & Communication, Electricity, Water, as well as Arts & Entertainment.”
The Nigerian economy is making a slow but steady recovery after slipping into a brief recession period in 2016. The country has since exited recession, recording a 0.82 percent increase in 2017 and now a 1.93 percent growth in 2018.
The International Monetary Fund (IMF) had predicted that Nigeria’s economy will grow by at least 2.3 percent in 2019, but the organisation later lowered the prediction to 2 percent following the drop in global crude oil prices that was witnessed in early January.
Similarly, the World Bank pegged its forecast of Nigeria’s economic growth in 2019 at 2.2 percent.