LCCI report reveals how non-oil sector improved Nigeria’s GDP YoY
Fresh report on Nigeria’s Gross Domestic Product (GDP) Alert by the Lagos Chamber of Commerce and Industry (LCCI), has revealed that the he Nigerian Economy Improved by 2.4 % in 2018Q4 and 1.9 % in 2018 Full Year (FY)
The report which relied on latest figures from the National Bureau of Statistics (NBS), revealed that Q4 2018 GDP numbers grew by 2.4% compared to Q3 2018 growth of 1.8 % YoY. This growth mirrored the performance of the non-oil sector which improved by 2.7 % YoY. The full year GDP improved by 1.9% better than 2017 of 0.8%.
LCCI said “This performance is still weak and fragile. It is also far below 3% annual population growth as this remain a cause for concern due to its wider on inclusive and sustainable growth in the country”.
Sectoral Contribution to overall GDP 2018FY showed that Crop production, Trade and Telecoms are the major contributors to overall GDP within the period under review.
Whereas Corp Production jumped to 23%, Trade rose to 16%, ICT/telecoms grew at 10%, leaving the hitherto growth leaders, Crude Petroleum & Natural Gas at nine percent as marginal others rallied remaining 27%
On top five fastest sectors in 2018, Agriculture lead key sectoral performance by expanding by 2.1% in 2018.
The major driver of this sector performance is Crop Production, which accounted for 88% of
agricultural output in 2018. In terms of contribution, Agriculture accounted for 25% of real output in the year.
Key growths were also recorded but in descending order from Metal Ores, Air Transport, Road Transport, Telecoms & Information Services, Quarrying & Other Mining, Public Administration, Motor Vehicles & Assembly, Oil Refining, Real Estate, to Coal Mining.
Average daily oil production stood at 1.91 million barrel per day in fourth quarter 2018. This was
lower than the 1.95 MBPD recorded in same quarter 2017. The oil sector grew by 1.1% as against 4.69% recorded in 2017. This sector contributes 8.60 % in 2018
Manufacturing
The Manufacturing sector recorded an annual growth rate of 2.09% in 2018, this marks significant improvement of -0.21% in the previous year. This sector contributes about 9.20 % to overall GDP
Within the period under review, Trade Sector contracted by -0.63 in 2018 from -1.05 % and -0.24% in 2016. The sector contributes 17.16% in 2018. The declining performance of this sector signifies that Nigerian consumers are still under severe pressure in terms of weak purchasing power, as trade is a major consumer facing sector.
In 2018, Telecommunication and Information services sector grew by 11.33% in 2018 from -2.04% in 2017and 2.03% in 2016. This sector contributes about 10% to overall GDP
In its executive summary, the LCCI GDP NEWS Alert agreed that the Nigerian economy continues on a growth path, but on weak, vulnerable and fragile operating environment.
LCCI averred that the observed growth is far below the country’s population growth of 3.0%, with wider implications for poverty, inclusive and sustainable growth.
Besides, key sectors such as Trade, Manufacturing and Agriculture recorded low performance and this, according to LCCI report signifies weakness on the part of the consumers purchasing power.
In a no hold bared summary, LCCI made it clear that “The growth in the economy is also tagged a ‘Jobless growth’ as unemployment keep on rising”. The latest report by poverty world clock also suggests that the number of extremely
In recommendation, the Chamber suggested that policies and reforms that will attract investment into the key employment elastic sectors should be implemented.
