Nigeria’s annual GDP growth slows to 6.18% in Q2 2103

By bne IntelliNews September 9, 2013

Nigeria’s real annual GDP growth slowed to 6.18% in the second quarter of 2013 from 6.56% in the first quarter mainly due to lower oil output, caused by thefts, leakages and pipeline breaks, the National Bureau of Statistics (NBS) said. In Q2 2012, the GDP growth was 6.39%. The nominal GDP of Africa’s second biggest economy was estimated at NGN 9.115trln (EUR 42.4bn) in Q2 2013, compared to NGN 9.84trln in Q1 2012 and NGN 9.494trln in Q1 2013.

The NBS said that while the oil sector experienced production challenges, the non-oil sector output increased in Q2 2013, driven by growth in the agriculture, airline, hotel and restaurant, and the construction sectors.

The average daily production of crude oil fell to 2.11 million barrels per day in Q2 2013 from 2.29 million barrels per day in Q1 2013 and 2.38 million barrels per day in Q2 2012. The real growth in oil GDP was thus negative at -1.15% in Q2 2013, compared to -0.54% in Q1 2013 and to -0.78% in Q2 2012.

Nigeria is the biggest oil producer in Africa and its economy is highly dependent on oil production, which is the country’s main source of foreign exchange revenue and also of government revenue in the form of taxes and royalties. However, oil thefts, sabotage, and pipeline vandalism are widespread in the West African country, and have led to the loss of over 136 million barrels of crude oil estimated at about USD 10.9bn due between 2009 and 2011. The oil sector contributed 12.9% to real GDP in Q2 2013, down from 14.75% in Q1 2013 and 13.86% in Q2 2012.

The non-oil sector recorded a 7.36% annual growth in Q2 2013, compared to a 7.63% rise in Q2 2012, and to 7.89% increase in Q1 2013. The decline was partly attributed to lower electricity generation which affected manufacturing, telecommunications and trade. Agriculture, which contributed 40.1% to Nigeria’s GDP, grew by 4.52% y/y in Q2 2013, speeding from a 4.14% growth in Q1 2013 and from 4.21% rise in Q2 2102.

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