Nigeria’s real Gross Domestic Product grew year-on-year (y-o-y) by 2.01% to N16.42 trillion in Q1 2019, but slower than 2.38% growth to N19.04 trillion registered in Q4 2018. The non-oil sector which accounted for the improved GDP number grew y-o-y by 2.47% to N14.92 trillion. This was majorly attributed to the 9.48% growth witnessed in the ICT sector to N2.19 trillion (of which telecoms share of GDP constituted 10.11%).
In addition, the Agricultural and Construction sectors revved by 3.17% and 3.18% respectively to N3.60 trillion and N0.67 trillion respectively from the N3.49 trillion and N0.65 trillion printed in Q1 2018.
However, the Oil & Gas sector contracted y-o-y by 2.40% to N1.50 trillion in Q1 2019 (a reversal from the 14.02% rise in Q1 2018). This was chiefly due to the drop in crude oil price in the quarter under review. The quarterly average crude oil price fell to USD64.60 per barrel in Q1 2019 from USD67.70 in Q1 2018.
On a quarter-on-quarter basis, the 13.77% decline in economic growth was adduced to the 15.69% decline in the non-oil sector, despite the significant growth of 11.60% printed in oil & gas sector in the quarter under review. The improved 2.01% y-o-y real GDP growth was reflective of improved business sentiment and investments in an environment of favourable monetary policies and macroeconomic variables, particularly exchange rate and inflation rate. Furthermore,
we expect growth to improve in the Q2 2019.