Nigeria’s GDP grew by 0.85% in 2017, but there is still a problem

shakirudeen taiwo

February 27, 2018 1:18 PM

Despite efforts at diversifying the economy, oil and gas still remains the country’s main growth driver.

The data released by the National Bureau of Statistics (NBS) on Tuesday, February 27 showed Nigerian economy grew by 0.82 percent in 2017. However, there is still problem of dominance of oil sector.

Economic performance in the period was sustained by oil sector. Oil GDP grew by 8.38% in Q4 2017 (-1.79% for 2017 and non-oil GDP was up by 1.45% in Q4 2017(0.47-% for 2017).

The Gross Domestic Product (GDP) growth rate of 0.82 percent is an improvement over -1.58 percent economic contraction in 2016.

A quarter on quarter analysis shows the economy has consolidated gain from exiting recession in Q3 2017. The economy grew by 1.92 percent in fourth quarter of 2017.

“GDP grows 1.92% in Q4 2017 compared to 1.41% in Q3 2017 & -1.73% in Q4 2016 ending full year 2017 with GDP growth of 0.83% compared to -1.58% in 2016,” the report said.

“The growth is lower relative to growth recorded in Q4 2016 at 12.49%.

“Nominally, 2017 recorded an annual growth rate of 12.05% higher by 4.25% compared to 2016 annual growth of 7.80%.”

The report also noted GDP growth in 2017 was driven by improvement in productivity of crop production, crude oil and natural gas, construction, metal ores, trade, transportation and storage and gas production sub-sectors.

shakirudeen taiwo