Nigeria’s Q3 GDP growth slows to 6.23% y/y with oil sector back into contraction

By bne IntelliNews November 17, 2014

Nigeria’s real gross domestic product grew by 6.23% y/y in the third quarter, slowing from a 6.54% expansion in the preceding quarter as the oil sector swung back into contraction, offsetting a stronger growth in non-oil GDP, data from the country’s National Bureau of Statistics (NBS) showed. In Q3 2013, the country’s GDP expanded by 5.17% y/y.

After expanding by 5.14% y/y in Q2, its first growth since Q2 2012, the oil sector of Africa’s biggest oil producer shrank by 3.6% y/y in Q3 as the average daily crude oil production fell 2.7% q/q to 2.15mbpd. Compared to the same period last year, Q3’s output was 4.9% lower. Oil exports account for about 70% of government revenues, but the country is troubled by widespread pipeline vandalism and oil theft, in addition to the recent drop in oil prices. The oil sector contributed 10.45% to real GDP in Q3, down from 10.76% in Q2.

On the other hand, growth in the non-oil sector quickened to 7.51% in Q3 from 6.71% in Q2, driven by the sectors of crop production, textile, apparel and footwear, telecommunications, and real estate, NBS said.

In q/q comparison terms, Nigeria’s GDP growth more than doubled to 8.67% from 4.18% in Q3, as the agriculture sector, expanded by 38.5% (+10.8% in Q2), and industry returned to growth (+1.3% in Q3 vs. -1.2% in Q2).

The services sector accounted for the largest share of real GDP in Q3 – 49.2%, followed by agriculture with a share of 26.6% and industry with 24.2%.

Nigeria’s nominal GDP (at basic prices) was estimated at NGN22.933trn ($134.8bn).

The IMF said last month that growth in Nigeria has been resilient despite poor security conditions and a decline in oil production and forecast GDP growth to speed up to 7.0% this year from 5.4% in 2013.

Real growth rate by sector Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14
Agriculture, y/y 2.46% 2.57% 3.44% 3.02% 5.53% 3.68% 4.47%
Agriculture, q/q -29.12% 12.74% 37.48% -6.23% -27.39% 10.76% 38.53%
Industry, y/y 1.82% 0.89% -0.10% 6.44% 4.84% 8.97% 5.43%
Industry, q/q 12.55% -4.89% 4.73% -5.06% 10.86% -1.15% 1.34%
Services, y/y 6.70% 8.95% 9.08% 8.72% 7.20% 6.54% 7.61%
Services, q/q -9.26% 5.14% -0.48% 14.51% -10.53% 4.50% 0.51%
Total, y/y 4.45% 5.40% 5.17% 6.77% 6.21% 6.54% 6.23%
Total, q/q -9.41% 3.86% 8.99% 4.12% -9.88% 4.18% 8.67%
Source: NBS              

Related Articles

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more

South Africa receives another downgrade to junk

Fitch Ratings on April 7 downgraded South Africa to junk status following the removal of Pravin Gordhan as finance minister and the enusing political crisis. Fitch's downgrade to 'BB+' ... more

S&P downgrades South Africa's credit rating to junk after cabinet reshuffle

Standard & Poor’s ratings agency has cut South Africa's sovereign credit rating to 'BB+' from 'BBB-' and the long-term local currency rating to 'BBB-' from 'BBB', both with a negative ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss