The Nigerian economy further improved in the last quarter of 2017 as the Gross Domestic Product (GDP) grew to 1.92 per cent, maintaining its positive growth since the emergence of the economy from recession in the second quarter of 2017.
A GDP report for the fourth quarter and full year of 2017 released by the National Bureau of Statistics (NBS) yesterday showed that aggregate GDP stood at N31.209 trillion in nominal terms higher when compared to N29.169 trillion in fourth quarter (Q4) 2016, resulting in a nominal GDP growth of 6.99 per cent. Quarter on quarter, real GDP grew by 4.29 per cent, while the full year GDP saw a real annual growth rate of 0.83 per cent higher by 2.42 per cent than –1.58 per cent recorded in 2016.
The 2017 fourth quarter GDP growth is against the contraction of –1.73 per cent recorded in Q4 2016 and a growth of 1.40 per cent recorded in Q3 2017. The 2017 Q4 growth is lower relative to growth recorded in Q4 2016 at 12.49 per cent.
NBS, in the report, said nominally, 2017 recorded an annual growth rate of 12.05 per cent higher by 4.25 per cent compared to 2016 annual growth of 7.80 per cent.
The Oil sector contributed 7.17 per cent of total real GDP in Q4 2017, up from figure recorded in the corresponding period of 2016 and down from the preceding quarter where it contributed 6.75 per cent and 10.04 per cent respectively.
The sector’s annual contribution was 8.68 per cent in 2017 and 8.35 per cent in 2016.
In real terms, the Non-Oil sector contributed 92.83 per cent to the nation’s GDP, lower from 93.25 per cent share recorded in the fourth quarter of 2016 but higher than the 89.96 per cent share in the third quarter of 2017. Annual contribution was 91.32 per cent and 91.65 per cent in 2016.
The NBS report showed that real growth of the oil sector was 8.38 per cent (year-on-year) in Q4 2017. This represents an incline of 26.08 per cent relative to rate recorded in the corresponding quarter of 2016.
Growth reduced by -17.50 per cent when compared to Q3 2017 which was 25.89 per cent Quarter-on-Quarter, the oil sector dropped by -25.52 per cent in Q4 2017. The annual growth of the oil sector stood at 4.79 per cent higher than the previous year’s growth of -14.45 per cent. In the period under review, oil production averaged at 1.91million barrels per day (mbpd), 0.12 million barrels lower than the daily average production recorded in the third quarter of 2017.
Oil production during the quarter was higher by 0.15million barrels per day relative to the corresponding quarter in 2016, which recorded an output of 1.76mbpd.
The non-oil sector grew by 1.45 per cent in real terms during the reference quarter. This is higher by 1.78 per cent point compared to the rate recorded same quarter, 2016 and 2.21 per cent point higher than in the third quarter of 2017. The non-oil sector had recorded an annual growth of 0.47 per cent compared to -0.22 in 2016, driven mainly by Agriculture (Crop), Trade and Transportation and storage.
The Agricultural sector comprising of Crop Production, Livestock, Forestry and Fishing sector grew by 10.13 per cent year-on-year in nominal terms, showing an incline from the same quarter of 2016 by 3.68 per cent points but a decline by -2.37 per cent points is recorded when compared to the preceding quarter’s growth rate of 12.50 per cent.
Crop Production remains the major driver of the sector. This is evident as it accounts for 91.79 per cent of overall nominal growth of the sector. In the fourth quarter of 2017, Agriculture contributed 21.97 per cent to nominal GDP.