Nigeria’s Economy Improves Slightly As Oil Production Increases

by on November 18, 2015

Nigeria’s economy has grown at a faster pace in the third quarter as oil production increased. Nigeria recorded a Gross domestic product (GDP) growth of 2.84 per cent year-on-year in the third quarter, compared with 2.35 per cent in the second quarter, latest report from the National Bureau of Statistics has shown.

This was higher by 0.49 per cent points from growth recorded in the preceding quarter, yet lower by 3.38 per cent points from 6.23 per cent growth recorded in the corresponding quarter of 2014.

Oil output jumped to 2.17 million barrels per day in the third quarter compared to 2.05 million barrels in the preceding quarter.

Nigeria is struggling to cope with an almost 60 per cent plunge in crude prices since June last year. The oil industry rose 1.1 per cent in the three months to the end of September, after contracting 6.8 per cent in the previous quarter, the statistics agency said. The non-oil industry, which makes up 90 per cent of GDP, increased 3.1 per cent in the third quarter, down from 7.5 per cent a year earlier. Manufacturing fell 1.8 per cent, the third consecutive quarterly contraction.

During the quarter, aggregate GDP stood at N24.3 trillion (in nominal terms) at basic prices. Compared to the third quarter 2014 value of N22.9 trillion, nominal GDP was 6.02 per cent higher. Nominal GDP growth was also higher relative to growth recorded in Q1 of 2015 by 0.85 per cent points.  Nigeria’s economy can be more clearly understood according to the oil and non-oil sector classifications:

Growth in the non-oil sector was largely driven by the activities of crop production, Financial Services, Telecommunications, and Trade amongst others. The non-oil sector grew by 3.05% in real terms in the Third Quarter of 2015. This was 4.45 per cent points lower from the corresponding quarter in 2014 and marginally lower from the Second Quarter of 2015. In real terms, the non-oil sector contributed 89.73 per cent to the nation’s GDP, marginally higher from shares recorded in the third quarter of 2014 which was 89.55 per cent, but lower from the second quarter of 2015.

Omolara Adegoke- Abuja

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