The Nigerian Gross Domestic Product (GDP) grew by 2.27 per cent in 2019, a National Bureau of Statistics (NBS) report has shown.
The report released on Monday, indicated that the 2019 growth was higher than the 1.91 per cent growth achieved in 2018.
Vice President Yemi Osinbajo welcomed the report, saying the President Muhammadu Buhari administration would not relent in boosting the economy.
Further analysis of the NBS report showed that the fourth quarter 2019 GDP grew by 2.55 per cent (year-on-year) in real terms. The fourth quarter growth was 0.17 per cent higher than the 2.38 per cent growth recorded by the economy at the same period in 2018.
The report also signposted an increase of 0.27 per cent points when compared with the third quarter of 2019. The strong fourth quarter 2019 growth rate represented the highest quarterly growth performance since the 2016 recession.
“Overall, this resulted in annual 2019 real growth rate of 2.27 per cent, compared to 1.91 per cent in 2018. Quarter on quarter, the real GDP growth was 5.59 per cent, “the NBS report showed.”
Special Adviser to the President on Economic Matters, Adeyemi Dipeolu, said the non-oil sector contributed 92.68 per cent to the GDP, as against the oil sector’s 7.27 per cent.
He noted that the economy, barring unexpected shocks, is expected to get better in the new fiscal year.
According to him, the early passage of the 2020 Appropriation Law and some new positive economic policies enacted by the President Muhammadu Buhari administration will enable the economy perform better within the year.
He said the growth experienced by the economy was driven by the better performance of some critical sectors like Information and Communication Technology, Agriculture and Manufacturing, which had significant leaps.
He said : “ GDP grew by 2.55 per cent (year-on year), in fourth quarter of 2019. This reflects an increase of 0.17 per cent over fourth quarter 2018 (2.38 per cent). This figure is also an increase of 0.27 per cent compared to the preceding quarter (third quarter of 2019). Aggregate GDP stood at N39.5 trillion while in real terms, GDP is at N19.53 trillion in fourth quarter of 2019.
“The growth in fourth quarter 2019 is the highest rate since Nigeria came out of the recession in 2017. This feeds into the estimated overall GDP growth for 2019 which is 2.27 per cent. This represents an increase on 2018’s growth rate of 0.36 per cent, and shows an improving trend since the recession, of increasing growth in GDP.
“The non-oil sector contributed 92.68 per cent to GDP in the period with the oil sector contributing 7.32 per cent. While the oil sector has seen an undulating trend over the past few years, the non-oil sector has a more stable and slightly upward growth trajectory. The non-oil sector’s contribution is on the back of Agriculture 26.1 per cent, Industries 20.27 per cent, and services 53.64 per cent.
“In the oil sector, average production was two million barrels per day (2mbpd) in fourth quarter 2019. The important thing to note is that production remained consistently around this range in 2019. The real growth of the oil sector in fourth quarter of 2019 was 6.36 per cent year-on-year (6.49 per cent in third quarter of 2019). For 2019, the oil sector recorded growth of 4.59 per cent (0.97 per cent in fourth quarter of 2018)
“The non-oil sector grew by 2.26 per cent in real terms in fourth quarter of 2019. This is a slight reduction compared with 2.7 per cent in fourth quarter of 2018, but higher than 1.82 per cent in the previous quarter. The growth in the non-oil sector is driven by Information and Communication Technology, Agriculture, Manufacturing and Financial and Insurance Services.,” he stated.
“Agriculture grew by 13.8 per cent in fourth quarter 2019, which is lower than 18.58 per cent and 14.88 per cent recorded in fourth quarter 2018 and third quarter 2019. Sector contribution is 22.12 per cent which is higher than recorded in 2018. Real growth in the sector was 2.31 per cent (year-on-year). In Manufacturing, the growth is 26.29 per cent for the period, which is less than 33.57 per cent and 39.69 per cent in fourth quarter 2018 and third quarter of 2019 respectively. Sector contribution is 11.37 per cent, which is higher than the same period in 2018. Real GDP growth was 1.24 per cent (year on year),” he added.
According to him, the Information and Communication Sector (Telecommunication mainly) recorded growth of 9.86 per cent in the period which is lower than 14.82 per cent and 10.99 per cent in fourth quarter 2019 and third quarter 2018 respectively. Sector contribution in 2019 was 10.68 per cent which is higher than the same period in 2018. Real GDP growth was 8.5 per cent.
“Finance and Services sector grew at 23.3 per cent in nominal terms. This is higher than the preceding quarter and the similar period in 2018. The Sectors annual contribution in 2019 was 2.93 per cent. In real terms, this growth was at 20.18 per cent. Economic growth is reflective of a healthy economy and points to the policies of government towards specific priority sectors. The report shows that Nigeria is growing, even higher than some international analysts had predicted. This growth can be attributed to the robust policies of the government to diversify the economy, renewed security efforts/reduced vandalism of pipelines, and improved consumption/production of local goods (rice) among others. Overall, the Nigerian economy performed reasonably despite external shocks, internal issues (border closure), tightening of monetary policy, and the Central Bank of Nigeria’s continued defense of the naira,” he said.
“There is also some improvement expected going forward with less volatility in oil prices, reduced effect of disease on crops (Lassa fever), more support to SMEs, early passage of the budget and continued diversification of the economy”, he said.
Reacting to the report, Vice President Yemi Osinbajo, said: “While we welcome the report, it is the determination of the Buhari Administration to continue to drive the economy towards further growth and shared prosperity as we continue our active engagements with states of the federation in that effort, because as the President said recently ‘the economy is the most delicate and sensitive of all aspects of national life”.