The oil sector shrank 6.79 percent, compared to a 5.14 percent growth a year earlier and 8.2 percent contraction in the previous quarter. Oil production stood at 2.05 million barrels per day (mbpd), 0.13mbpd lower than the preceding period and 0.16mbpd down from a year earlier. As a result, industrial production shrank 3.31 percent (-2.53 percent in Q1): manufacturing declined 3.82 percent (-0.7 percent in Q1); electricity, gas, steam and water supply dropped by 11.61 percent (-27.92 in Q1); and mining and quarrying contracted 6.62 percent (-7.91 in Q1).
In contrast, construction grew 6.42 percent (+11.17 in Q1). Services expanded at a slower 4.67 percent, compared with a 7.04 percent rise in the previous period. Information and communication sector grew 6.26 percent; internal trade went up 5.07 percent; finance and insurance grew 6.41 percent and real estate increased 2.97 percent. Agriculture expansion slowed to 3.49 percent (+4.7 percent in Q1).
Oil accounts for nearly 70 percent of Nigeria public revenues and around 90 percent of foreign exchange earnings. The fall in oil prices has been hurting the country’s public finances and currency, with the naira losing nearly 9 percent to the USD so far this year due to capital outflows. The devalued currency prompted a rise in prices of imported goods with inflation rate hitting 9.2 percent in July, the highest in more than two years.