NBS: Nigeria's GDP growth drops again in Q2 2019

Nigeria's Gross Domestic Product (GDP) has declined for a second consecutive quarter, according to a new report by the National Bureau of Statistics (NBS).

In the report released on Tuesday, September 3, 2019, the NBS disclosed that the 2.10% (revised from 2.01% due to oil output revisions) reported for Q1 2019 declined to 1.94% in Q2 2019, a decline of -0.16% points. The Q1 figure had represented a decline by -0.38% points when compared to Q4 2018.

Despite the quarter-on-quarter decline, the NBS said the GDP grew year-on-year, in real terms, when compared to Q2 2018 which recorded a growth of 1.50%, an increase of 0.44% points.

The report read, "During the quarter, aggregate GDP stood at N34,944,151.61 million in nominal terms, an increase of 13.83% over the performance in the second quarter of 2018 and 9.8% over the preceding quarter.

"The performance observed in Q2 2019 follows an equally strong first quarter performance, and was likely aided by stability in oil output as well as the successful political transition.

"Overall, a total of 15 activities grew faster in Q2 2019 relative to last year, while 13 activities had higher growth rates relative to the preceding quarter.

"On a half year basis, real growth in the first half of 2019 stood at 2.02%, higher than in 2018 which was 1.69%. Quarter on quarter, real GDP increased by 2.85% compared to a decline of –13.69% in the preceding period."

The oil sector contributed 8.82% to total real GDP in Q2 2019, up from levels recorded in Q2 2018 but down compared to Q1 2019.

In Q2 2019, Nigeria recorded average daily oil production of 1.98million barrels per day (mbpd) which is 7.6% higher than the daily average production of 1.84mbpd recorded in Q2 2018 but slightly less than output recorded in Q1 2019.

"The oil sector posted a real growth rate of 5.15% (year-on-year) in Q2 2019, representing a 9.10% points increase relative to the rate recorded in the corresponding quarter of 2018.

"It also indicates an increase of 6.61% points when compared to Q1 2019(revised). Quarter-on-Quarter, the oil sector recorded a growth rate of -1.55% in Q2 2019," NBS said.

The non-oil sector contributed 91.18% to the nation's GDP, lower than the share recorded in Q2 2018 (91.45%), but higher than in Q1 2019 (90.78%).

The sector grew by 1.64% in real terms during the reference quarter, and was driven mainly by information and communication, mining and quarrying, agriculture, transportation and storage, as well as other services.