Nigeria’s Economy slows to 6.21% in Q1, oil sector continues negative trend

The Nigerian economy slowed by 0.56 percentage points to 6.21 percent in first quarter of the year, from 6.77 percent recorded in the fourth quarter of 2013. But growth was higher than 4.55 percent in the corresponding quarter of 2013, the National Bureau of Statistics (NBS) said yesterday.

The Bureau estimates Nominal Gross Domestic Product (GDP) for the quarter at N20,169,778.04 million, or N15,438,679.50 million in real terms. But in the corresponding quarter of 2013, nominal GDP was estimated N18,295, 631.91 or N14,535,420.95 million in real terms.

In a report yesterday, the NBS noted that the services sector grew the most at 7.20 percent  during the first quarter of the year, followed by Agriculture at 5.53 percent and then Industry at 4.84 percent.

Oil sector, in real terms recorded a negative growth of was -6.60 percent, however, a better performance than the -11.40 percent growth recorded in the corresponding 2013 quarter and the -9.36 percent growth recorded in the fourth quarter of 2013.

On nominal basis, oil GDP for the quarter stayed around N2,612,066.21 million, compared to N2,756,313.26 recorded in the corresponding quarter of 2013.

According to the NBS, average daily crude oil production in the first quarter stood at 2.26mbpd, down from the 2.29mbpd recorded in the corresponding quarter of 2013.

Non-oil sector grew by 8.21 percent, slowing marginally by 0.57 percent points from the fourth quarter of 2013, but a 0.76 percent points increase from the 7.44 percent growth recorded in the corresponding quarter of 2013.

The data office noted that the Services sector accounted for the largest share of real GDP in the quarter, amounting to N8,181,239.94 million or 52.99 percent.

Industry ranked second with a contribution of N4,223,469.13 million or 27.36 percent, whilst Agriculture constituted the smallest sector in the first quarter, representing N3,033,970.43 million or 19.65 percent of GDP, the Bureau stated.

Figures showed that Trade was the largest contributor to real GDP in the first quarter at N2,678,514.71 million or 17.35 percent of real GDP in the first quarter of 2014, marginally higher than the 17.34 percent contribution to GDP recorded in the corresponding quarter of 2013.

The sector saw strong growth of 6.28 percent in the opening quarter of 2014, marginally higher than the record for the corresponding quarter of 2013, on account of higher agricultural output, a key input for traders.

Crop production came the second highest contributor to real GDP with N2,643,112.08 million or 17.12 percent of total real GDP, roughly unchanged from first quarter 2013 figure.

The NBS further noted that the first Quarter 2014 growth was recorded at 5.42 percent an increase from 1.78 percent recorded during the first quarter of 2013.

“This was as a result of increased farming activity in combination with high yield seedlings during the dry season,” the bureau stated.

Real estate represented 6.82 percent of real GDP in the first quarter, indicating a 1.55 percent point decline from the 8.37 percent in the preceding quarter, but only a marginal 0.20 percent point decline from that of the corresponding quarter of 2013.

Despite a positive growth rate of 3.17 percent, this was 6.96 percent points lower than the 10.13 percent growth recorded in quarter 4 of 2013, and according to the NBS, this was the sharpest decline in growth in the sector since 2011.

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