By Elizabeth Adegbesan
The National Bureau of Statistics, NBS, said the nation’s Gross Domestic Product (GDP) grew by 0.51 per cent in the first quarter of the year (Q1’21).
In its recently released GDP Report, the bureau said the growth in GDP represents the second consecutive quarter-on-quarter (QoQ) growth since Q3’20 where GDP stood at -3.62 percent.
The report stated: “Nigeria’s GDP grew by 0.51 percent (YoY) in real terms in the first quarter of 2021, marking two consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020.
”The Q1’21 growth rate was slower than the 1.87 percent growth rate recorded in Q1’20 but higher than 0.11 percent recorded in Q4’20, indicative of a slow but continuous recovery.
“Nevertheless, quarter on quarter, real GDP grew at -13.93 percent in Q1’21 compared to Q4’20, reflecting a generally slower pace of economic activities at the start of the year.
“In the quarter under review, aggregate GDP stood at N40 trillion in nominal terms. This performance is higher when compared to the first quarter of 2020 which recorded aggregate GDP of N35.6 trillion, indicating a YoY nominal growth rate of 12.25 percent.
“The nominal GDP growth rate in Q1’21 was higher relative to 12 percent growth recorded in the first quarter of 2020 as well as the 10 percent growth recorded in the preceding quarter.”
According to the bureau, the oil sector accounted for 9.25 percent of aggregate real GDP while the non-oil sector accounted for 90.75 percent of aggregate GDP during the period.
On oil sector, the report stated: “In the first quarter of 2021, average daily oil production stood at 1.72 million barrels per day (mbpd), or 0.35mbpd lower than the average daily production of 2.07mbpd recorded in the same quarter of 2020 but higher than the production volume of 1.56mbpd recorded in the fourth quarter of 2020.
“The oil sector recorded a real GDP growth rate of –2.21 percent (YoY) in Q1’21 indicating a decrease of –7.27 percent points relative to the growth rate recorded in the corresponding quarter of 2020 (5.06 percent)”.
Compared to Q4 2020 which recorded a –19.76 percent growth rate, growth in Q1’21 was higher by 17.6 percent points.
“Quarter-on-quarter, the oil sector recorded a growth rate of 35.65% in Q1 2021.
“In terms of contribution to aggregate GDP, the Oil sector accounted for 9.25 percent of aggregate real GDP in Q1’21, slightly lower than 9.5 percent recorded in the corresponding period of 2020 but higher than in the preceding quarter, where it contributed 5.87 percent.
On non-oil sector, the bureau said: “The non-oil sector grew by 0.79 percent in real terms in Q1 2021, which was –0.75 percent points lower compared to the rate recorded in the same quarter of 2020 and -0.89 percent points lower than rates recorded in the fourth quarter of 2020.
“Growth in the non-oil sector was driven mainly by the Information and Communication (Telecommunication) sector while other drivers include Agriculture (Crop Production); Manufacturing (Food, Beverage & Tobacco); Real Estate; Construction and Human Health & Social Services.
“In real terms, the Non-oil sector accounted for 90.75 percent of aggregate GDP in Q1’21, higher than its share in Q1’20 which was 90.5 percent but lower than 94.13 percent recorded in Q4’20.”