The National Bureau of Statistics had released its latest GDP figures for the first quarter of 2016 confirming that in the First Quarter of 2016, the nation’s Gross Domestic Product (GDP) slowed by -0.36% (year-on-year) in real terms.
This was lower by 2.47% points from growth recorded in the preceding quarter and also lower by 4.32% points from growth recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP slowed by 13.71%.
This is the first negative GDP growth rate since 1995 when it reported a GDP growth rate of -0.3%.
The Bureau also reported that during the quarter, aggregate GDP stood at N 22,262,575.97 million (in nominal terms) at basic prices. Compared to the First Quarter 2015 value of N21,041,701.10 million, nominal GDP was 5.80% higher. Nominal GDP growth was however lower relative to levels recorded in Q4 of 2015 by 14.15% points.
GDP In Key Sectors
The Bureau reported that real growth of the oil sector slowed by 1.89% (year-on-year) in Q1 of 2016. This represents an improvement relative to growth recorded in Q1 2015 when growth slowed by 8.15% . Growth also increased by 6.39% points relative to growth in Q4 of 2015. Quarter-on- Quarter, growth also improved by 10.27%.
As a share of the economy, the Oil sector contributed 10.29% of total real GDP, marginally lower from the share recorded in the corresponding period of 2015, yet higher from the share in Q4 of 2015 by 2.24% points.
The reason for this drop is attributed to the first quarter drop in Oil production which stood at 2.11million barrels per day (mbpd) 0.05mbpd lower from production in Q4 of 2015. Oil production was also lower relative to the corresponding quarter in 2015 by 0.07mbpd when output was recorded at 2.18mbpd.
Non Oil GDP
The report also reveals that the non-oil sector slowed 0.18% in real terms in Q1 of 2016. This was 5.77% points lower from the corresponding quarter in 2014 (Figure 3) and 3.32% points from the previous quarter . In real terms, the Non-Oil sector contributed 89.71% to the nation’s GDP, marginally higher from shares record- ed in Q1 of 2016 (89.55) yet lower from and Q4 2015 (91.94%).
While activities such as Crop production, Trade and Telecommunications & Information Services sup- ported growth of the sector, growth was weighed upon by declines in Manufacturing, Financial Insti- tutions, and Real Estate.