Nigeria’s real gross domestic product grew by 5.94% y/y in the fourth quarter, slowing from a 6.23% expansion in the preceding quarter, as a recovery in the oil sector could not offset a slower growth in non-oil GDP, data from the country’s National Bureau of Statistics (NBS) showed. In Q4 2013, the country’s GDP expanded by 6.77% y/y.

However, the West African country’s full-year GDP growth accelerated to 6.22% last year from 5.49% in 2013.

In Q4, the oil sector of Africa’s biggest oil producer recovered, posting a 1.18% y/y growth after a 3.6% y/y contraction in Q3. This came as the average daily crude oil production increased to 2.18mbpd from 2.15mbpd in Q3 and 2.16mbpd in Q4 2014. 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 oil price slump. The oil sector contributed 8.97% to real GDP in Q4, down from 10.45% in Q3.

On the other hand, growth in the non-oil sector decelerated to 6.44% in Q4 from 7.51% in Q3 due to a slowdown in agriculture (to 3.64% from 4.47%) and services (to 6.15% from 7.61%).

In q/q comparison terms, Nigeria’s GDP growth slowed sharply to 3.84% from 8.67% in Q4, as the agriculture sector contracted by 6.97% (+38.5% in Q3), and industry shrank 2.79% (+1.34% in Q3).

The services sector accounted for the largest share of real GDP in Q3 – 53.48%, followed by agriculture with a share of 23.86% and industry with 22.66%.

Nigeria’s nominal GDP (at basic prices) was estimated at NGN24.21trn ($121.2bn) in Q4.

Nigeria’s GDP growth is widely expected to slow this year (IMF: 4.8%, World Bank: 5.5%), reflecting weak oil prices, a sharp depreciation of the local naira currency, and political risks.