Nigeria’s economy grew 1.8% n Q3’18, six-month growth streak continues

Nigeria’s economy recorded a modest growth growth of 1.81 percent in the third quarter of 2018, expanding for the sixth consecutive quarter on the back drop of improved productive activities in the services, agriculture and industrial sector according to the National Bureau of Statistics (NBS).

The 1.81 percent year-on-year growth is higher than the 1.50 percent year-on-year growth recorded in the second quarter of 2018 and 1.14 percent recorded in the third quarter of 2017.

The services, industries, and agriculture sector accounted for 48.79 percent, 21.97 percent, and 29.25 percent of overall output growth respectively.

A breakdown of the GDP figure by the NBS shows that the oil sector contracted by 2.91 percent as growth rate recorded for Q3 2018 was 19.64 percent. This is in contrast with Q3 2017 where the sector grew by 23.03 percent.

The NBS estimated crude oil production during the period at 1.96mb/d, 0.6mb/d lower than the 2.02mb/d reported in Q3-17. The sector contributed 9.38 percent to total GDP against 8.55 percent and 9.84 percent in Q2-18 and the corresponding quarter of 2017 respectively.

Output in the non-oil sector grew by 2.32 percent year-on-year in Q3-18, 27 basis points higher than the rate recorded in Q2-18, and 310 basis points higher when compared to the growth rate achieved a year ago. The non-oil sector contributed 90.62 percent to total GDP compared with 91.45 percent and 90.16 percent in Q2-18 and Q2-17 respectively.

An analysis of three of the biggest components of the GDP shows that services expanded by 2.64 percent year-on-year vs 2.12  percent in Q2-18 and -2.66  in Q3-17.

Also, Agriculture grew by 1.91 percent year-on-year, 72 basis points and 115 basis points lower than growth rates recorded in Q2-18 and Q3-17 respectively.

Manufacturing grew by 1.92 percent year-on-year 124 basis points lower and 477 basis points higher than growth rates recorded in Q2-18 and Q3-17 respectively.