Nigeria’s GDP shrinks from 1.95% to 1.5% in 2018 - NBS reveals

Minister of Finance Kemi Adeosun

Minister of Finance Kemi Adeosun

The National Bureau of Statistics today released the Q2, 2018 Nigerian GDP report, which showed that the current growth rate is pegged at 1.50%, a -0.45% decline from the previous quarter (Q1, 2018) growth of 1.95%.

"On a quarter on quarter basis, real GDP growth was 2.94 percent", it said.

The non-oil sector performance was however constrained by agriculture that grew by 1.3% compared to 3.00% in q1 2018 and 3.01% in q2 2017.

Meanwhile, the Minster said the FG is encouraged by the continuing growth recorded in the non-oil sector, which grew by 2.05% in Q2 2018.

This rate of growth in the second quarter of 2018 is slower compared to 1.95 per cent recorded in the first quarter of the year.

It added that the figure was -0.45% points slower than 1.95 percent recorded in the first quarter of 2018.

Other non-oil sectors that drove growth in the second quarter include Telecommunications which grew by 11.51%, Water supply and Sewage 11.98% and Broadcasting by 21.92%.

"For instance, average crude oil production was only 1.84 million barrels per day in Q2 2018 as opposed to an average production of 2 million barrels per day in Q1 2018", he noted.

The oil sector shrank 3.9% in the second quarter.

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Statistician General and Chief Executive Officer of National Bureau of Statistics (NBS), Dr. Yemi Kale, last week denied reports quoting that Nigerian economy had yet to recover from recession.

The Nigerian economy grew 1.5% in the second quarter of 2018, a downturn from 1.95% growth recorded in the Q1.

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In the report which contained the full details of economic growth in the country in 2017, the NBS attributed the GDP growth in the fourth quarter of 2017 to growth in crop production, crude production and natural gas, metal ores, construction, transportation and storage, trade, electricity and gas production.

The Minister said once the issues are addressed, there should be able positive growth in the oil and gas sector.

"Indeed, we are now undertaking a mid-term review of the Plan to assess progress, see where we are, and identify those things that we may need to tweak in the implementation of the ERGP", he said.

Udoma Udo Udoma, minister of budget and national planning, says there is an urgent need to pay attention to Nigeria's uncontrolled population growth.

The sector contributed 8.55 percent of total GDP against 9.61 percent and 9.04 percent in first quarter of 2018 and the corresponding quarter of 2017 respectively during the review period.

He expressed the commitment of the President Buhari-led government to turn Nigeria around and transform it into "a productive country where we grow what we eat, consume what we make and use what we produce".

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