" />
Published On: Wed, Sep 6th, 2017

Nigerian economy rebounds after five consecutive contractions

FELIX OLOYEDE |

 

The Nigerian economy recorded its first growth since the first quarters of  2016 when it slipped into recession.

The Gross Domestic Product (GDP) rose 0.55 Per cent in the second quarter of 2017 from -0.52 per cent contraction recorded in Q1 2017, data released on Tuesday by the National Bureau of Statistics (NBS) showed.

The report indicates the Q2 2017 growth rate of 0.55 per cent (year-on-year) was 2.04 per cent higher than the rate recorded in the corresponding quarter of 2016 (-1.49%) and higher by 1.46 per cent points from rate recorded in the preceding quarter, which was revised to –0.91% from –0.52% due to revisions to crude output for March 2017.

About 15 economists surveyed by Bloomberg had predicted that the Nigerian economy extended 0.7 per cent in Q2 2017, the IMF projected a 0.8 per cent GDP growth rate for the country at the end of 2017, which would be aided by increase in crude oil price.

The preliminary results for the second quarter of the year released by the statistics agency showed the economic recovery was on the back of  significant growth recorded in  oil, agriculture, manufacturing and trade activities during the period under review.

The results revealed that Oil GDP recovered significantly from -11.63 per cent in Q2 2016 and -15.40 per cent in Q1 2017 to 1.64 per cent in Q2 2017.

But while Oil GDP expanded considerably in the second quarter of 2017, Non-oil GDP only grew at 0.45 per cent, down from 0.72 per cent in the preceding quarter and -0.38 in the corresponding period in 2016.

It also showed that agriculture continued its strong and positive growth, which it had maintained throughout the recession, growing by 3.01 per cent in Q2 2017, from 3.39 per cent in Q1 2017 and 4.53 per cent in Q2 2016.

Manufacturing retained its positive growth for the second consecutive quarter in Q2 2017, growing at 0.64 per cent compared to 1.36 per cent in Q1 2017 and -3.36 per cent in Q2 2016, while trade which has a dominant share of GDP remained negative at -1.62 per cent, but the contraction in the sector decelerated from the -3.08 per cent recorded in Q1 2017.

Also, electricity and gas and financial institutions sectors also recorded strong growths, with electricity and gas growing by 35.5 per cent, compared to -5.04 per cent in Q1 2017 and -10.46 per cent in Q2 2016 and financial institutions growing by 11.78 per cent in Q2 2017, compared to 0.60 per cent in Q1 2017 and -13.24 per cent in Q2 2016.

The results also showed that the industry sector grew positively by 1.45 per cent in Q2 2017, after nine consecutive quarters of negative growth since Q4 2014.

As a percentage of GDP, services retained the giant share of GDP at 53.73 per cent in Q2 2017, down by 1.94 per cent points (55.67 per cent) from the first quarter of 2017 and 54.80 per cent in Q2 2016; industries accounted for 23.31 per cent of GDP, compared to 22.90 recorded in Q1 2017 and 22.65 per cent in Q1 2016; while agriculture accounted for 22.97 per cent of GDP in the quarter under review, compared to 21.43 per cent in Q1 2017 and 22.55 per cent in Q2 2016.

Displaying 1 Comments
Have Your Say
  1. […] Nigerian economy rebounds after five consecutive contractions […]

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Most Shared

Recent posts

  • Nigeria’s GDP rises 1.95%, non-oil sector accounts for 90.3%

    The oil sector’s contribution to Nigeria’s Gross Domestic Product, GDP remains below 10 per cent in Q1 figures of the nation’s GDP released by the National Bureau of Statistics in Abuja today. According to the NBS, the nation’s GDP grew by 1.95 per cent year-on-year- in real terms in the first quarter of 2018. Although […]

  • National healthcare delivery threatened as sector’s crises worsen

    . JOHESU strike is sheer blackmail – NMA  By BAYO OBAJEMU These are troubling times for the health sector beset by the panoply of problems, some of them of long-standing nature while others are offshoots of long years of neglect by the authorities. But the spectre of war drums that hovers over the sector now […]

  • Foreign CEOs take over Corporate Nigeria

    . They are trying to protect their interests – Experts  By AYOOLA OLAOLUWA Foreigners have taken over the management of most multinational companies in Nigeria, BusinessHallmark findings have revealed. A two-week survey conducted by BH in May 2018, which involved fifty top companies, show that twenty-eight of the companies are headed by expatriates, while only […]

  • UBA’s Uzoka steps out of the shadows

    By TESIM SHITTA-BEY United Bank for Africa (UBA) has had a chequered history of good times and bad times but with its blazing first quarter (Q1) 2018 results setting the tone for a new twist in the tale analysts have begun to take out calculators as they forecast the bank’s potential year-end earnings. With profit […]

  • Ikeja Hotels returns to Lagos bourse

    The Nigerian Stock Exchange (NSE) has given the management of Ikeja Hotels the approval to resume trading after reviewing the two-year suspension placed on the shares of the company on Nov. 10, 2016. According to a ‘facts behind the restructuring’ document released by Ms Tinuade Awe, NSE Executive Director Regulation, trading would commence on the […]

  • Pharmacist council begins recall of Codeine cough syrup

    The Pharmacists Council of Nigeria (PCN) says it has started recalling cough syrup containing Codeine from its stakeholders in compliance with Federal Government directive. The Registrar of PCN, Mr Elijah Mohammed, revealed this in an interview with the News Agency of Nigeria (NAN) on Saturday in Abuja. The Minister of Health, Prof. Isaac Adewole, had […]

  • N5bn fraud: Akingbola has case to answer – Supreme Court

    The Supreme Court on Friday ordered, Erastus Akingbola, to return to the Federal High Court, Lagos, to answer his alleged five billion Naira fraud charge. Akingbola is a former Managing Director of the defunct Intercontinental Bank Plc. Justice Tanko Muhammad, leading a five-man panel, affirmed the Feb. 20, 2015 judgment of the Court of Appeal […]

  • AMCON takes over Sen. Oduah’s assets

    The Asset Management Corporation of Nigeria (AMCON) has taken over Sea Petroleum Oil & Gas Ltd. and other assets belonging to Sen. Stella Oduah-Ogiemwonyi over an unpaid debt of about N20 billion. AMCON said the takeover followed an injunction granted by Justice M.S. Hassan of the Federal High Court, Lagos against Sea Petroleum Oil & […]

  • Not so sir, Army panel tells General TY Danjuma

    The Nigerian Army on Friday said allegations against it by retired Gen. T.Y Danjuma that it colluded with militia in Taraba and refused to protect the people were untrue. The Chief of Army Staff, Lt.-Gen. Tukur Buratai, made this known at a news conference in Abuja where he gave details of the findings of the […]

  • Total, Mobil oil top losers’ chart on NSE

    Total Nigeria Plc on Friday at the Nigerian Stock Exchange (NSE)  topped the losers’ chart, dropping by N9.80 to close at N212 per share, the News Agency of Nigeria (NAN)reports. Mobil Oil trailed with a loss of N7 to close at N181, while Dangote Cement was down by N3 to close at N245 per share. […]

  • Invest more in science education, academic tasks FG

    The Federal Government has been advised to increase its funding of the education sector if Nigeria is to become globally competitive. An academic at the Obafemi Awolowo University, Ile Ife in Osun State, Dr Babatunde Ogundare, gave the recommendation on Tuesday at the Faculty of Science Secondary Schools Quiz Competition held at the institution. Addressing […]

  • Timeline of Ebola virus since first known outbreak

    Following is a recap of past epidemics of Ebola as the Democratic Republic of Congo (DRC) battles a new outbreak of the deadly tropical disease: 1976: First known outbreak  Ebola was first identified in central Africa in 1976 and named after a river in northern Democratic Republic of Congo (DRC). It claimed 431 lives that […]

  • Crude prices hits above $80 since late 2014

    Benchmark oil contract Brent North Sea briefly surged above $80 a barrel Thursday, hitting its highest level since late 2014 and extending a recent run higher fuelled by tight supply concerns. European stock markets meanwhile rose as the euro weakened against the dollar, but Wall Street pulled back in early New York trading. Brent North […]

  • AfDB approves $100m to boost fertilizer production in Nigeria

    The African Development Bank (AfDB) says it has approved 100 million dollars senior loan to Nigerian firm, Indorama Eleme Fertilizer and Chemicals Limited, to support the production of Fertilizer in Nigeria. The Bank disclosed this in a statement, on Thursday adding that it would help the company’s plans to double its fertilizer production from 1.4 million […]

  • FG opens online portal for investors

    The Federal Government has launched an up-to-date online portal, `iGuide Nigeria’, containing necessary information and relevant data for willing investors. The Minister of Trade and Investment, Mr Okechukwu Enelamah, at the launch in Abuja on Thursday, said the portal would greatly improve the Ease of Doing Business in the country. The Permanent Secretary of the […]

  • Governors threaten NNPC over fuel subsidy

    National Economic Council (NEC), comprising the 36 State Governors in the country has threatened to take over the responsibility of subsidising petroleum products in their states based on consumption following the huge amount of money being spent by the NNPC as fuel subsidy payment annually. The Chairman of Governors’ Forum, Gov. Abdulazeez Yari of Zamfara […]