Nigerian Economy Shrinks 0.4% in Q1

The GDP in Nigeria contracted by 0.36 percent year-on-year in the first three months of 2016, compared to a 2.11 percent expansion in the previous period and way below forecasts of 1.7 percent growth. It is the first contraction since the June quarter of 2004 as the non-oil sector contracted, mainly due to a slowdown in the services sectors due to a weakening naira while lower oil prices keep dragging the oil sector down.

The oil sector shrank 1.89 percent year-on-year, following an 8.28 percent contraction in the previous quarter. Oil production stood at 2.11 million barrels per day (mbpd), 0.05 mbpd lower than in the preceding period.

Industrial production shrank 2.24 percent: manufacturing declined 8.39 percent (-13.09 percent in Q4), mining and quarrying fell by 2.96 percent (-8.05 percent in Q4) and electricity, gas, steam and water supply dropped 44.46 percent (+1.2 percent in Q4) and construction fell 5.37 percent (+4.14 percent in Q4).

The non-oil sector went down 0.18 percent, from a 3.14 percent growth in the previous period. Services expanded at a much slower 0.8 percent, compared with a 3.69 percent increase in the previous period. Information and communication grew 4.07 percent (+4.21 percent in Q4); internal trade went up by 2.02 percent (+4.69 percent in Q4); while real estate decreased 4.69 percent (+0.79 percent) and finance and insurance fell 11.28 percent (+6.41 percent in Q4).

Agriculture grew 3.09 percent, lower than a 3.48 percent expansion in Q4.

Quarter on quarter, real GDP dropped by 13.7 percent, following a 3.1 percent growth in the previous period.

Nigerian Economy Shrinks 0.4% in Q1

NBS | Mojdeh Kazemi |
5/20/2016 7:42:16 PM