December 11, 2018

Non oil sector boosts GDP growth to 1.81%

In one month, Nigeria loses N38bn to subsidy, oil theft, pipeline repairs

…as Service sector accounts for highest growth

By Peter Egwuatu

THE nation’s Gross Domestic Product (GDP) grew by 1.81 percent Year-on-Year (YoY) in real terms in the third quarter, 2018 (Q3’18), driven by growth in the non-oil sector as the oil sector contracted by 2.8 percent YoY.

In its Q3’18 GDP report, the National Bureau of Statistics, NBS, indicated that the economy grew by 0.64 percent from 1.17 percent recorded in Q3’17.

The report also shows Services sector which constitutes 52% of the economy, led the GDP growth with a 2.6 percent YoY reading, trailed by manufacturing (9 percent of economy) and agriculture (29 percent of economy) growing at 1.9 percent YoY.

NOIPolls consumer confidence index drops 7 points in Q3’18

Notably, Q3’17 GDP growth was revised downward from 1.4 percent YoY to 1.2 percent YoY based on updated oil production numbers for the quarter.

In the quarter under review, aggregate GDP stood at N33,368,049.14 million in nominal terms. This performance is higher when compared to the third quarter of 2017 which recorded a GDP aggregate of N29,377,674.03 million thus, presenting a positive YoY nominal growth rate of 13.58 percent.

Non-oil vs Oil Sector

The non-oil sector grew by 2.32 percent in real terms during the reference quarter. This is higher by 3.08 percent points compared to the rate recorded same quarter of 2017 and 0.28 percent point higher than the second quarter of 2018.

Real growth of the oil sector was –2.91 percent YoY in Q3’18 indicating a decrease of –25.94 percentage points relative to rate recorded in the corresponding quarter of 2017. Growth increased by 1.04 percentage points when compared to Q2 2018 which was –3.95 percent.