In the second quarter of 2017, the nation’s Gross Domestic Product (GDP) grew by 0.55% (year-on-year) in real terms, indicating the emergence of the economy from recession after five consecutive quarters of contraction since Q1 2016.
This growth is 2.04% higher than the rate recorded in the corresponding quarter of 2016 ( –1.49%) and higher by 1.46% points from rate recorded in the preceding quarter, (revised to –0.91% from –0.52%). Quarter on quarter, real GDP growth was 3.23%
During the quarter, aggregate GDP stood at N26,986,005.20million in nominal terms, compared to N23,547,466.91 million in Q2 2016, resulting in a Nominal GDP growth of 14.60%. This growth was higher relative to growth recorded in Q2 2016 (3.01%). The Nigerian economy can be more clearly understood when classified into oil and non-oil sectors.
The Oil Sector
During the period under review, Oil production is estimated to have averaged at 1.84million barrels per day (mbpd), 0.15million barrels higher than the daily average production recorded in the first quarter of 2017 (June 2017 is estimated and may be revised).
Oil production during the quarter was higher by 0.03million barrels per day relative to the corresponding quarter in 2016, which recorded an output of 1.81mbpd. (Figure2) Note that oil output for March 2017 has been revised; this affected average output for the first quarter 2017 from 1.83mbpd to 1.69mbpd.
The Non-Oil Sector
The major driver of growth in the Non-oil sector was the Agriculture Sector( Crop Production), finance & insurance, Electricity, gas, steam and air conditioning supply and Other Services. The non-oil sector grew by 0.45% in real terms during the reference quarter.
This was 0.83% point higher than the rate recorded second quarter, 2016 and -0.28% point lower than in the first quarter of 2017.(See Figure 3). In real terms, the Non-Oil sector contributed 91.11% to the nation’s GDP, lower from share recorded in the second quarter of 2016 (91.21%) and in the first quarter of 2017 (91.47%).