Nigeria’s economic growth slows down in second quarter

Nigeria’s economy grew year-on-year in the second quarter of 2019 by 1.94%, riding on the back of stable oil prices to push the half-year (H1) growth to 2.02%, Nigeria’s bureau of statistics said on Tuesday.

However, when compared to 2.10%  recorded in the first quarter of 2019, the Q2 real growth rate indicates a decline of 0.16% point.

The decline in Q2 may be due to the dip in crude oil production. Production slowed to 1.98 million per day as against 1.99 million recorded in the preceding quarter.

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The oil sector grew by 5.15% while the non-oil saw a 1.64% increase during the quarter.

The statistics office said the growth in the non-oil sector was driven by information and communication, agriculture, mining and transportation sectors.

However, the Q2 growth is good enough to push growth in H1 of 2019 up by 0.33% more than the 1.69% recorded for the half-year of 2018.

During the quarter, aggregate GDP stood at N34,944,151.61 million in nominal terms, an increase of 13.83% over the performance in the second quarter of 2018 and 9.8% over the preceding quarter.

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Quarter on quarter, real GDP increased by 2.85% compared to a decline of –13.69% in the preceding period.

The performance observed in Q2 2019 follows an equally strong first-quarter performance and was likely aided by a successful political transition.

Nigeria’s central bank projected a 3% growth for the economy in 2019. But the country has been unable to grow beyond 3% in the last four years.

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