REPORT: Despite Global Economic Downturn, Nigeria’s GDP Grew By 1.87 Percent In Q1

Nigeria appears to be making fiscal gains despite palpable global economic downturn and plunge in oil prices occassioned by the virulent COVID-19 pandemic.

On Monday, the National Bureau of Statistics (NBS) disclosed that Nigeria’s Gross Domestic Product (GDP) grew by 1.87 per cent (year-on-year) in the first quarter of this year.

The bureau made the disclosure in a  report posted on its website.

NBS said the performance was recorded against the backdrop of significant global disruptions, resulting in sharp fall in prices and restricted international trade arising from the COVID-19 public health crisis.

It said the Q1 2020 performance represented a -0.23 per cent point drop when compared with Q1 2019, and 0.68 per cent point dip relative to Q4 2019, adding that this was a reflection of the earliest effects of disruption, particularly on the non-oil economy. In the review period, the NBS report indicated that quarter-on-quarter, real GDP growth was -14.42 per cent compared to 5.59 per cent recorded in the preceding quarter.

Also in Q1 2020, aggregate GDP stood at N35,647,406.08 million in nominal terms, NBS said, pointing out that this performance was higher when compared to first quarter of 2019, which recorded N31,824,349.67 million, with a nominal growth rate 12.01 per cent year-on-year.

The report indicated that relative to Q1 2019, the nominal growth rate was higher by 0.11 per cent points but lower than the preceding quarter by -0.32 per cent points.

NBS said in the review period, an average daily oil production of 2.07 million barrels per day was recorded, stating that the production level was higher than the 1.99 million barrel per day recorded in the same quarter of 2019 by 0.08mbpd and the fourth quarter of 2019 by 0.06 million barrels per day (mbpd).

The report indicated that non-oil sector grew by 1.55 per cent in real terms during Q1 2020, saying this was lower by -093 per cent points compared to the rate recorded during the same quarter of 2019, and -0.72 per cent point slower than the corresponding period of last year.

It said the non-oil sector was driven mainly by Information and Communication, Financial and Insurance, Agriculture and Mining.

It said in real term, the Non-Oil sector contributed 90.50 per cent to the nation’s GDP in the review period, which was less than its share in the first quarter of 2019 put at 90.78 per cent and the forth quarter of 2019 which contribution was put at 92.68 per cent.

The NBS report listed activities that witnessed weaker performance relative to Q1 2019, including quarrying, road transport, accommodation, food, services, as well as real estate.