GDP Declines To 1.50 Percent Q2 As Political Bickering Takes Toll On Nigeria

Statistician General, Yemi Kale

***As Agric, Crude Oil Production Contract To 1.3, -3.95 Percents Respectively, NBS

By CLEMENT NWOJI, Abuja

The growing concentration on politicking and political bickering ahead of the 2019 General Election has taken its toll on nation’s Gross Domestic Product (GDP) indicating a downturn, as statistics released by the National Bureau of Statistics (NBS) showed a decline to 1.50 percent GDP in second quarter, 2018.

The second quarter growth in GDP at 1.50 percent contrasted with that of first quarter, 2018, which was 1.95 percent, showing a decline of 0.45 percent when compared to the previous quarter.

The Gross domestic product (GDP) measures the monetary value of all the finished goods and services either produced or rendered within a country’s borders within a specific timeframe.

The NBS which noted that the growth in the second quarter was driven for the first time since exit from recession, by the non-oil sector at 2.05 percent growth, also said that the Non-oil growth was driven by transportation which grew by 21.76 percent.

Although NBS did not give explanations for the growth in transportation, however OPTIMUM TIMES noted that the growth in transportation may not be unconnected with increased vehicular activities occasioned by various public holidays observed within the period under review which triggered mass movement of goods and humans for the celebration across the country.

The public holidays observed include: Good Friday (March 30, 2018), Easter Monday (April 2, 2018), Workers Day (May 1, 2018), Democracy Day (May 29, 2018) and Eid al-Fitr (June 15-16, 2018).

Even as the non-oil grew, NBS said that its performance was hindered by growth in agriculture which shrunk from 3.00 percent in the first quarter to mere 1.3 percent in the second quarter, 2018.

According to the NBS, “For the first time since the exit from recession, growth was driven by the non-oil sector which grew by 2.05% representing the strongest growth in non-oil GDP since Q4 2015.

“Non-oil GDP growth which was -0.18% in Q1 2016, -0.38% in Q2 2016, 0.03% in Q3 2016, -0.33% in Q4 2016, 0.72% in Q1 2017, 0.45% in Q2 2017, -0.76% in Q3 2017, 1.45% in Q4 2017and 0.76% in Q1 2018, grew strongly in Q2 2018 by 2.05%.

“Non-oil growth was driven by transportation which grew by 21.76% supported by growth in construction which grew by 7.66% and electricity which grew by 7.59%.

“Other non-oil sectors that drove growth in Q2 2018 include telecommunication which grew by 11.51%, water supply and sewage which grew by 11.98% and broadcasting which grew by 21.92%.

“The non oil sector performance was however constrained by
Agriculture that grew by 1.3% compared to 3.00% in Q1 2018 and 3.01% in Q2 2017.

“Q2 2018 GDP growth was also constrained by oil GDP with crude oil and gas production contracting by -3.95% compared to 14.77% in Q1 2018 and 3.53% in Q2 2017

“Services GDP recorded its best performance in nine quarters, growing by 2.12% in Q2 2018 compared to -0.47% in Q1 2018 and -0.85% in Q2 2017.”