NIGERIA'S GDP GROWTH SLOWS DOWN Q2 2018 BUT....SAYS NBS

Growth in Nigeria's Gross Domestic Product (GDP) slowed down to 1.50% in the 2nd quarter to June 2018 compared to 1.95% in 1st Quarter, says the National Bureau of Statistics (NBS).

According figures released today August 27, 2018 by the NBS, the good news though was that for the first time since the 2016 recession, growth rate was driven by the non-oil sector.

To boot, the slow down, though not encouraging was still more than double the 0.72% growth rate recorded in the 2nd quarter of 2017 when the economy was just starting out on the slow recovery from recession.

The NBS says that within Q2 2018 the non-oil sector grew by 2.05% the strongest it had ever grown since the recession. 

In Q1 2016 this sector had shrunk by 0.18% followed by more shrinking by 0.38% in Q2 of same year.

However, in the 3rd quarter of same 2016,it grew by 0.03% but shrunk again by 0.33% in 4th quarter.

Throughout 2017, adds the NBS, non-oil GDP shrunk only in Q3 (-0.76%) and grew by 0.72% in that year's Q1, 0.45% in Q2 and by 1.04% in the last quarter of the year.

Come first quarter this year, it grew by only 0.76% before clocking the pace setting rate in the 2nd quarter.

This pace, explains the NBS, was set by combined top growths recorded by broadcasting (up 21.92%)  Transportation (up 21.76%); Water supply (11.98%); Telecommunication (11.51%) Construction (7.66%); and Electricity (7.59%).

On the other hand, two sectors that hitherto paced growth slowed down very badly. Agriculture recorded only 1.3% growth in Q2 compared to 3% in 1st Quarter and 3.01% in Q2 2017.

Worse, was the tumble recorded in the always dominant oil sector. GDP here, says the NBS, shrunk by 3.95% within Q2 2018 compared to much higher 14.77% growth in Q1 to March 2018 and 3.53% growth in 2017's 2nd quarter.

In other words, if the oil sector had continued to grow at more recent rates and if slow down in Agricultural GDP had not occurred, Q2 growth would have been remarkable.

But then, that was if....reality  different, says the NBS and Nigeria, of course, will soon feel the pinch of the shoe especially in the foreign exchange supply where oil and gas remain the main sources.

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