Nigeria’s GDP Slowed In Second Quarter Of 2018

Nigeria’s Gross Domestic Product (GDP) has grown by 1.50% in the second quarter, slower than the 1.95% growth in the first quarter of 2018.

According to the GDP report released by the National Bureau of Statistics (NBS), the second quarter GDP is driven by the non-oil sector 2.05% growth indicating an increase in the second quarter of 2018.

“In the second quarter of 2018, Nigeria’s Gross Domestic Product (GDP) grew by 1.50% (year-on-year) in real terms to N16.58trillion.

“Growth in Q2 2018 was 0.79% points higher when compared to the second quarter of 2017 which recorded a growth of 0.72%, but –0.45% points slower than 1.95% recorded in the first quarter of 2018.

“On a quarter on quarter basis, real GDP growth was 2.94%,” the NBS report read in part.

The transportation sector led non-oil GDP Growth with 21.76% while the Agriculture GDP fell 1.3% lower 3% in the first quarter of 2018.

The NBS said the growth in the second quarter of 2018 is driven by developments in the non-oil sector as the services sector recorded its strongest positive growth since 2016.

However, the relatively slower growth when compared to the first quarter of 2018 and second 2017 could be attributed to developments in both the oil and non-oil sectors.

In the second quarter, aggregate GDP stood at N30.69 trillion in nominal terms.

“For better clarity, the Nigerian economy can be classified broadly into the oil and non-oil sectors,” the report said adding that average daily oil production was recorded at 1.84million barrels per day lower than the daily average production of 1.87mbpd recorded in the same quarter of 2017 by – 0.03mbpd and also lower than the production volume of 2.0mbpd seen in the first quarter of 2018.

The non-oil sector grew by 2.05% in real terms during the reference quarter. According to NBS, this represents 1.60% points increase compared to the rate recorded for the same quarter in 2017, and 1.29% points over the first quarter of 2018.

Nigeria’s GDP Falls 2.24% In 3rd Quarter of 2016 

Nigeria's GDP Falls 2.24% In 3rd Quarter of 2016Nigeria’s Gross Domestic Product falls 2.24% in the third quarter of 2016, according to a new set of data released early on Monday by the National Bureau of Statistics.

Africa’s largest economy shrunk by 2.06% in the third quarter as the country is hit by massive revenue shortage, foreign exchange shortage and volatile naria-dollar parity.

Monday’s data shows Nigeria’s oil sector falls 22.01% in the third quarter ended September, while non-oil sector grew a paltry 0.03%.

Oil sector contribution to GDP was seen at 8.19% and non-oil sector contribution to GDP was higher at 91.81%.

During the period under review, Nigeria’s Aggregate Gross Domestic Product in nominal terms was recorded at 26.558 billion naira, or a 9.23% growth.

It was a similar case earlier in the second quarter of the year.

Nigeria’s Gross Domestic Product (GDP) had contracted by 2.06% in the second quarter of 2016.

According to the NBS report, the decline caused the Naira to get weaker while lower oil prices dragged the oil sector down with output shrinking by 0.36 in the first quarter.

During the quarter, nominal GDP was 2.73% higher at 23.48 million Naira at basic prices.

Economic Recession: Speaker Dogara Asks Nigerians To Be Patient

Dogara, Kano KillingThe Speaker of the House of Representatives in Nigeria, Mr Yakubu Dogara, has asked citizens to be patient and have unwavering confidence in the future of the nation’s economy which is in recession.

He reassured them that the Federal Government would find solutions to the current economic recession.

Nigeria’s economy had officially slipped into recession few weeks, after a report by the National Bureau of Statistics showed that the nation’s Gross Domestic Product contracted.

According to the report, the decline of 2.06% in the second quarter of 2016 has caused the Naira to get weaker while lower oil prices dragged the oil sector down.

The output shrunk by 0.36 in the first quarter.

During the quarter, nominal GDP was 2.73% higher at 23.48 million Naira at basic prices.

This growth was lower than the rate recorded in the second quarter of 2015 by 2.44% points.

Mr Dogara made the call in Abeokuta, the Ogun State capital on Friday after a meeting with the Ogun State Governor, Mr Ibikunle Amosun, at the Government House in the state’s capital.

Reacting to the state of emergency on the economy by the Nigeria Governors Forum, the Speaker said that the forum was entitled to its opinion.

He told reporters that the members of the House of Representatives would soon come out with their own views on the economy.

Few days ago, the President of the Senate and the leader of the National Assembly, Senator Bukola Saraki, had assured Nigerians that the upper legislative chamber would continue to work towards ensuring that things get better for Nigerians.

Senator Bukola Saraki made the promise while addressing reporters after he joined President Muhammadu Buhari at the Presidential Villa, in Abuja, to observe Jumat service on September 9.

“We Will Overcome”

He appealed to Nigerians to bear with the administration, as it strives to bring the country out of the current economic recession.

“We will continue to appeal to Nigerians to bear. We know we are all going through difficult times.

“In every country, people go through challenges. But with prayers and support, we will overcome it.

“The most important thing is for us to stay together and give each other support and continue to believe in this great country,” he stated

GDP: Nigeria To Further Surpass South Africa In 2016 – PwC

PricewaterhouseCoopersThe Chief Economist and Partner at PricewaterhouseCoopers in Nigeria, Andrew Nevine says the country’s Gross Domestic Product will grow some 30 billion U.S. dollars above South Africa in the current 2016 fiscal year.

Nigeria’s GDP stands at 568 billion dollars in 2014 versus 350.1 billion for South Africa. The gap is set to widen as South Africa faces some key challenges in its mining and energy sectors.

Speaking at the presentation of the new research report on ‘Nigeria: Looking Beyond Oil’ in Lagos on Thursday, Mr Nevine said that despite the present challenges facing Nigeria as Africa’s biggest economy, the potentials of the country beyond oil are enormous.

The new study jointly done by the international consulting firm and the Lagos Chamber of Commerce and Industry (LCCI), highlights tax basket expansion, proper fiscal management, ease of doing  business and developing a knowledge-based economy as some major drivers of economic diversification for Africa’s largest oil producer.

The PwC Chief Economist said that Nigeria’s intrinsic economic potential lie beyond crude oil, advising that the country should prepare for ”life beyond the oil resource”.

Simplified Processes

A Partner and Head, Tax and Regulatory Services with PricewaterhouseCoopers, Taiwo Oyedele, has also said that the National Assembly has a huge role to play in ensuring that Nigeria successfully diversifies its economy.

Speaking on Channels TV’s Business Morning on Friday, he highlighted the need to harmonise the sections of the Nigerian Constitution that will improve the economic and regulatory environment.

Even though transiting to a non-oil economy will not be an easy task, Mr Oyedele believes complex processes can be simplified to improve the ease of doing business.

GDP Rebasing Will Make Nigeria An Investment Destination – Experts

Sunrise John ChukwuExperts say that the recently announced rebasing of Nigeria’s GDP has only elevated the status of Nigeria in terms of economic size and not necessarily shown that there was more prosperity for Nigerians.

They noted that while this was a positive move and a great achievement for the country, it is just one of the steps needed towards developing the economy for the purpose of making measurable impact on the people.

Sunrise on Channels Television played host to the MD of Cowry Asset Management, Johnson Chukwu, who noted that the structure of the economy was the reason why the obviously well represented growth of Nigeria’s economy was not reflecting on the populace where there were still many Nigerians living in poverty.

He noted that Nigeria has kept producing more millionaires in recent years, showing that there was indeed growth but the wealth has not been made to spread evenly. He stated that there was need for the country to develop structures in sectors that would amount to job creation.

Financial Analyst, Odilim Enwegbara, who was also on the programme said that Nigeria’s economic growth was not real sector driven and Nigeria needs to redefine its growth.

He noted that the over-dependence of the economy on oil and gas remains one of the issues. He said; “show me any Nigerian billionaire that is not involved in oil and gas.”Sunrise Enwegbara

He also emphasized the low level of development in the manufacturing sector in the country as a major issue. While acknowledging the positive impact the growth in some of the sectors would have on Nigerians, he noted that most of the businesses that have contributed to the celebrated growth were not indigenous companies run by Nigerians.

Reacting to Nigeria’s status as having become the largest economy in Africa, he took time to make a comparative analysis of the differences between South Africa and Nigeria in terms of economic indices which shows that South Africa remained ahead of Nigeria in terms of the quality of impact its economic state has on the people.

He cited the population of Nigeria as a major factor that makes the country’s economy demand better management.

The informal sector was also identified not to have been captured in the rebasing. Mr. Chukwu said that it would almost be impossible to capture all the petty traders and small shop owners in the calculations but he expressed confidence that the quality of work done on the exercise indeed took special focus on them, with an appreciable percentage of them captured.

He maintained an earlier stance that the rebasing was not expected to amount to more money for the average Nigerian, but its ability to attract more foreign direct investment to develop the local industries would eventually add value to the people through direct and indirect jobs.

Mr Enwegbara added that the rebasing was an exercise for the Government to know which sectors to focus on for the purpose of growing the economy and not one that the everyday Nigerian understands, let alone feel its direct impact.

He recommended the dire need for Nigeria to diversify its economy and solve the problem of power supply as the most important solution to the economic hardship that Nigerians were facing.

Speaking passionately on the need for the Nigerian authorities to take major decisions, he also mentioned other infrastructural deficiencies in the country as a major barrier to any form of growth being envisaged.

Mr. Chukwu on his part noted that the country cannot totally be independent as it was a consuming nation and it would need to encourage the availability of more businesses providing daily needs as seen in the establishment of shopping malls across the country.

He, however, warned that it was important for the Government to control this sector to ensure that the country imports less and exports more. He also advised that the Government creates a support mechanism for the very poor population in order to boost their consumption capacity and make them active players of the economy, as a strategy to create market for local industry.

He noted that what the best countries in the world do is that they focus on their areas of comparative advantage; something he acknowledged that the Government was doing through agriculture.

Ministers, Policy Leaders React To Nigeria’s GDP Growth

Min of FinanceSome well-meaning Nigerians have been reacting to the national Gross Domestic Product as released by the National Bureau for Statistics, describing the exercise as very key in policy making by both the private and public sectors of the economy.

In an interview with Channels Television after the special press conference where the new figure of 510billion dollars was released by the NBS, Minister of Information, Mr Labarn Maku, said that the GDP could have done better if not for incessant insurgency in the land.

Also speaking, the Acting Governor of the Central Bank of Nigeria, Mrs Sarah Alade and the Director-General of the Securities and Exchange Commission, Mr Arunma Oteh, said that the new figure would definitely enable policy makers and analysts obtain more accurate set of statistics to work with.

For over two hours they sat listening to the presentation of the rebased GDP estimate for Nigeria 2010-2013, and the key point was that with the new figure of $510billion GDP, Nigeria now ranks as the 26th largest economy in the world, just behind Argentina, Belgium, and Poland, but ahead of Austria, South Africa, Venezuela and Colombia.

On a per capita basis, Nigeria stands at about $2,688 per capita and occupies the 121st position in the world; a figure with which Nigerians are being cautioned not to get carried away especially as the growth is coming amidst insecurity in the land.

How investors would apply the new figures in their judgement of where best to invest funds was of paramount importance and this could only be achieved if the investors had confidence in the figures.

Building this confidence was made possible by the injection of independent bodies in the data collection to ensure that the numbers were consistent.

The Minister of Finance and Supervising Minister of the Economy, Dr Ngozi Okonjo-Iweala, revealed, “The work that was done by the Chief Statistician and his team was subjected to review by a panel of six Nigerian experts; Professor Olu Ajakaye, Professor Akpan Expo, Dr. Ayo Teriba, Dr Doyin Salami, Profesor Garba and Dr, Yemi Fagbeunsi.

“The Statistician(s) had all along an IMF consultant working with them because that is the key job of the multilaterals, particularly the IMF (International Monetary Fund). We later subjected the numbers again to checks through a team of multilateral institutions. The African Development Bank, the World Bank and the IMF, all took a look, so it’s been quite a rigorous process.”

One of the highlights of the new figure is that Nollywood (1.2%) and telecommunications (8.7%) have emerged as major areas alongside the agriculture sector (22%), with the share of oil and gas (15.9%) dropping in the new GDP; a lesson that Nigeria should double efforts to grow the other sectors.

The Bureau for Statistics expressed optimism that the exercise would be a regular issue, at least every five years; a challenge to both the private and public people to become more creative in policy making.

Rebasing The GDP: Nigeria Emerges As The Largest Economy In Africa

CBNNigeria has emerged the largest economy in Africa.

The Statistician-General of Nigeria, Dr. Yemi Kale, made this public at an event in Abuja on Sunday, April 6.

He announced that the current GDP of the country stands at $510 billion, and according to him, this makes Nigeria the largest economy in Africa.

Explaining the concept of GDP and how it is calculated, in a presentation on the process of rebasing the nation’s GDP, Dr. Kale noted that rebasing does not imply new figures only, but shows clearly the performance of the economy in data form.

He noted that rebasing and re-benchmarking of the GDP was just one of the things the country needs to get its statistics right.

He, however, warned that it was important that Nigerians “do not mix data with ideology”. He added, “We need to be more objective in the way we apply our data.”

The last time Nigeria rebased its GDP was in 1990.

 

Nigeria’s GDP For 2013 Is $510 Billion

CBNNigeria has emerged the largest economy in Africa

The Statistician-General of Nigeria, Dr. Yemi Kale, made this public at an event in Abuja on Sunday, April 6.

He announced that the current GDP of the country stands at $510 billion, and according to him, this makes Nigeria the largest economy in Africa.

Explaining the concept of GDP and how it is calculated, in a presentation on the process of rebasing the nation’s GDP, Dr. Kale noted that rebasing does not imply new figures only, but shows clearly the performance of the economy in data form.

He noted that rebasing and re-benchmarking of the GDP was just one of the things the country needs to get its statistics right.

He, however, warned that it was important that Nigerians “do not mix data with ideology”. He added, “We need to be more objective in the way we apply our data.”

The last time Nigeria rebased its GDP was in 1990.

 

Nigeria Now 26th Largest Economy In The World, And Its Per Capita GDP Is 121st In The World

CBNNigeria has emerged the largest economy in Africa

The Statistician-General of Nigeria, Dr. Yemi Kale, made this public at an event in Abuja on Sunday, April 6.

He announced that the current GDP of the country stands at $510 billion, and according to him, this makes Nigeria the largest economy in Africa.

Explaining the concept of GDP and how it is calculated, in a presentation on the process of rebasing the nation’s GDP, Dr. Kale noted that rebasing does not imply new figures only, but shows clearly the performance of the economy in data form.

He noted that rebasing and re-benchmarking of the GDP was just one of the things the country needs to get its statistics right.

He, however, warned that it was important that Nigerians “do not mix data with ideology”. He added, “We need to be more objective in the way we apply our data.”

The last time Nigeria rebased its GDP was in 1990.

Lagos Contributes A Quarter Of Nigeria’s GDP – Commissioner

Sunrise AkabuezeThe Lagos State Commissioner of Economic Planning and Budget, Ben Akabueze, has reiterated that the economy of Lagos State is very robust and vibrant.

He made this assertion while appearing on Channels Television as a guest of Sunrise Daily, to discuss the vision of the Lagos State Government for the development of its economy and the plans for its forthcoming Economic Summit.

He said that the Lagos State Government was working to ensure that a greater proportion of its budget is put into capital expenditure as that is what fuels growth in the economy. He added that it has been proven that there is a link between infrastructure development and economic growth.

He revealed that the state had a medium term budget strategy which spans over 3 years, and this creates a number of projects to be executed within the period. He said that having such medium term plan then requires that funding is provided annually to facilitate the projects involved.

He also revealed that Lagos State has a long term plan that looks as far as the year 2025, with a vision of where the state should be. The plan in this regard is to transform Lagos into Africa’s model mega city in terms of social infrastructure, healthcare, education, transportation and other modern metropolitan features.

Akabueze noted that Lagos at the moment was already a mega city by its population of over 10million people; the government was aware of this and therefore is not aspiring to achieve being a mega city but becoming a “model mega city”.

On his view about the economy of the state, Akabueze noted that Lagos contributes about a quarter of the country’s GDP, which amounts to 60% of the GDP if the oil and gas contribution is removed, with 60% of the commercial activities in the country also being done in Lagos.

In banking, “on the average, 40% of the network of all of the banks is here in Lagos”

He added that the single largest power generation plant is in Lagos along with the 2 largest distribution companies as well, which accounted for up to 50% of revenues in the entire national power company.

The Commissioner noted that for Lagos State, they are aware that Public Private Partnership was an imperative towards achieving its vision of a model mega city.

In the state’s developmental vision up till 2025, the state reckons that it must have a minimum 15,000 megawatts of power and the upcoming Economic Summit is targeted at highlighting the investment opportunities in the power sector in Lagos.

He revealed that to generate 10,000 megawatts of power which is needed on the immediate, would require about 1billion dollar investment but an additional 10,000 megawatts of power in Lagos would turn around the economy in every sector including agriculture as he emphasized the peculiarity of Lagos having a ready-made consumer base for agricultural products.

Akabueze said, “The summit is going to look at a wide variety of issues relating to the power sector… Our power sector is transiting from a public sector monopoly to a private sector controlled sector.”