Nigeria’s Gross Domestic Product (GDP) contracted by -2.24 per cent in real terms in the third quarter of 2016, according to data just released by the National Bureau of Statistics (NBS).
The Nigerian Gross Domestic Product Report for third quarter 2016 showed considerable slowdown in the oil sector and marginal growth in non-oil sector.
The contraction of -2.24 per cent was lower by 0.18 per cent points from growth recorded in the preceding quarter and also lower by 5.08 per cent points from growth recorded in the corresponding quarter of 2015. Quarter-on-quarter, real GDP increased by 8.99 per cent.
During the quarter, aggregate GDP stood at N26.558 trillion in nominal terms at basic prices. Compared to the third quarter 2015 value of N24.314 trillion, nominal GDP grew by 9.23 per cent. This growth was higher relative to growth recorded in the third quarter of 2015 by 3.22 percentage points.
During the period under review, Oil production according to NNPC, averaged at 1.63 million barrels per day (mbpd), lower from production in second quarter of 2016. Oil production was also lower relative to the corresponding quarter in 2015 by 0.54 million barrels per day when output was recorded at 2.17mbpd.
As a result, real growth of the oil sector slowed by –22.01 per cent year-on-year in third quarter of 2016. This represents a decline relative to growth recorded in same quarter of 2015 at 1.06 per cent. Growth declined by 23.07 per cent points and 4.54 per cent points relative to growth in third quarter of 2015 and second quarter of 2016 respectively. Quarter-on-quarter, growth was 8.07 per cent.
As a share of the economy, the oil sector contributed 8.19 per cent of total real GDP, down from figures recorded in the corresponding period of 2015 and the preceding quarter of 2016 recorded at 10.27 per cent and 8.26 per cent respectively.
Growth in the non-oil sector was largely driven by the activities of agriculture, information and communication and other services. The non-oil sector grew by 0.03 per cent in real terms in the third quarter of 2016, reversing the last two quarters of negative growth recorded in Q1 and Q2 2016.
This was 0.41per cent points higher from the second quarter of 2016, yet 3.03 per cent points lower from the corresponding quarter in 2015. In real terms, the non-oil sector contributed 91.81 per cent to the nation’s GDP, higher from 91.74 per cent recorded in the second quarter of 2016 and the third quarter of 2015
RipplesNigeria ….without borders, without fears
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
SPECIAL REPORT: World Bank road projects go bad in Enugu, as state govt fails to fulfill promise
Counterpart funded road projects between the world Bank and Enugu State government have started to fail, as the state government...
INVESTIGATION: How N70m road construction created more hardship for Sokoto residents
“To address recurrent accidents on Gagi to Gidan Dilo road and Fakon Idi roads, in Sokoto State, the Federal Government,...
INVESTIGATION: Inside Kwara school where students are used as labour on teachers’ private farms
In this report, SHEREEFDEEN AHMAD uncovered how young students in Kwara State, Nigeria, are being used for labour work on...
INVESTIGATION: How Kano SUBEB awarded contracts to inactive contractors, non-existent schools
In an effort to address issues hindering quality education, the Kano State Government in 2020 awarded N88,406,667.10 for the construction...
SPECIAL REPORT: Hike in gas price forces more Nigerians to use coal, sawdust, as smoke kills 93,300 yearly
In the build-up to the 27th Conference of Party (COP 27), Nigeria recently launched its energy transition plan (ETP) as one of...