GDP: Some Movement In The Non-Oil Economy In Nigeria

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

PZ Cussons commences entries for Cussons Baby Moments’ 6th season

PZ Cussons has announced the commencement of entries of the 6th season of its eponymous baby competition in Nigeria tagged...

Owo Arugbo: Ekiti Begins N20,000 Payment To The Elderly As Monthly Stipend For Social Security Scheme

Ekiti State Governor, Dr Kayode Fayemi on Wednesday re-launched the social security Scheme for elderly citizens in the state with,...
- Advertisement -
- Advertisement -

The national accounts for Q4 2017 show an acceleration in growth from 1.4% y/y in the previous quarter to 1.9%. Our expectation, shared with the wire services, was GDP growth of 2.1% y/y.

The acceleration was in part a reflection on improved stability in the Niger Delta since the oil economy expanded by 8.4% y/y, and therefore on the political leadership for responding to local sensitivities. It was also driven by an improvement in the non-oil economy, which expanded by 1.5% y/y following the previous quarter’s -0.8%. The data is not seasonally adjusted.

  • The NBS notes in its commentary that oil production averaged 1.91 mbpd in Q4 2017, compared with 2.03 mbpd the previous quarter and 1.76 mbpd in the comparable year-earlier period. We are seeing, therefore, a diplomatic dividend on a y/y basis.
  • Oil’s share of real GDP amounted to just 7.2% in Q4 2017, which makes it the fifth largest sector in the economy after agriculture, trade, information and communications, and manufacturing. Through its linkages across other sectors, however, the indirect oil economy may be as large as 40% of GDP.
  • In the non-oil economy, the decent y/y growth posted by transportation and storage (double-digit) and construction may indicate some reward for the FGN for its infrastructure spending. Sectors more responsive to consumer spending (such as information and communications) disappointed.
Read:  Nigeria’s Education Sector: Broken Chalks, Cracked Blackboards
Read:  FG begins restructuring, recapitalization of Bank of Agriculture

Sources: National Bureau of Statistics (NBS); FBNQuest Capital Research
  • Turning to the Q1 2018 data, we again see positive base effects for the oil economy. Output averaged 1.69 mbpd in Q1 2017 and is currently running at +/- 2.0 mbpd. The non-oil economy is generally soft in the first quarter as households recover from seasonal festivities. We are looking for GDP growth of 2.6% y/y in the current quarter.
- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Ensurity Technologies joins the Microsoft Intelligent Security Association

HYDERABAD, INDIA - Media OutReach - 17 October 2019 - Ensurity Technologies, Hyderabad, India-based cybersecurity company, is pleased to announce that it has joined the...

Hospitality Disruptor Generator Acquires Freehand Hotels In Its Quest to Dominate the Experience Economy in U.S. Market

London-based Queensgate Investments finalizes $400 million purchase of Freehand Hotels from a seller consortium including The Yucaipa Companies and Sydell Group, drastically expanding Generator’s...

Sunlight Real Estate Investment Trust ("Sunlight REIT") Operational Statistics for the Quarter Ended 30 September 2019

HONG KONG, CHINA - Media OutReach - 17 October 2019 - Henderson Sunlight Asset Management Limited (the " Manager"), as manager of Sunlight Real Estate Investment Trust...

“Best Global Brands 2019” – Mercedes-Benz is once again the world’s most valuable luxury car brand

Mercedes-Benz further increased its brand value and is once again the world's most valuable luxury automotive brand. In the latest "Best Global Brands 2019"...

More Articles Like This