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Nigeria’s GDP contracts by 2.24% in Q3

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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.

Read also: Finance Ministry, FIRS disagreement hampers MSE growth in Nigeria

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

 

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