Report released by National Bureau of statistics (NBS) on Wednesday, showed that the Nation’s Gross Domestic Product (GDP) in real terms declined further by 2.06 per cent in the second quarter of the year 2016 with a negative growth in almost all major sectors of the economy.
The report revealed that Gross Domestic Product which declined by 2.06 per cent was lowered by 1.70 per cent from the growth rate of –0.36 per cent recorded in the first quarter, and also lower by 4.41 per cent points from the growth rate of 2.35 per cent recorded in the corresponding quarter of 2015.
According to the report, nominal GDP stood at N23, 483,954.78 million at basic prices; 2.73per cent higher than the Second Quarter 2015 value of N22, 859,153.01 million. This growth was lower than the rate recorded in the Second Quarter of 2015 by 2.44per cent points.
The Negative growth was mostly attributed to poor growth in the oil sector which saw a negative growth of 17.48per cent in the Second Quarter of 2016 resulting in a decline of 10.68 per cent points and 15.59per cent points relative to growth in the Second Quarter of 2015 and First Quarter of 2016 respectively.
The Oil sector also contributed 8.26per cent to total real GDP, down from the contribution recorded in the corresponding period of 2015 and the First Quarter of 2016 by 1.54 per cent points and 2.03per cent points respectively to the economy.
“During the period under review, Oil production was estimated at 1.69 million barrels per day (mbpd), 0.42 million barrels per day lower from production in First Quarter of 2016. Oil production was also lower relative, to the corresponding quarter in 2015 by 0.36million barrels per day when output was recorded at 2.05mbpd” the report reads in part.
The non-oil sector on the other hand recorded a significant growth in some sectors while some sector recorded a negative growth.
Growth in the Non-oil sector was largely driven by activities in seven sectors of Agriculture, Information & Communication, Water supply, Arts entertainment and recreation, Professional scientific and technical services, Education and Other Services which all grew positively.
However, the remaining 19 major sectors, many of which are substantially indirectly dependent on the oil sector recorded negative growth by 0.38per cent in real terms in the Second Quarter of 2016.
“This growth rate was 0.20per cent points lower than the First Quarter of 2016 (-0.18per cent), and 3.84per cent points lower from the corresponding quarter in 2015 (3.46per cent). In real terms, the Non-Oil sector contributed 91.74per cent to the nation’s GDP, higher from shares recorded in the First Quarter of 2016 (89.71per cent) and the Second Quarter of 2015 (90.20per cent).” The report said.
Sector by sector reports showed that Mining & Quarrying Sector declined by 47.90per cent compared to the growth rate recorded in the corresponding quarter of 2015, when growth was recorded at –33.30per cent; Agriculture saw a growth rate recorded in the corresponding quarter of 2015, but lower than that recorded in the First Quarter of 2016 by 4.07per cent points and 0.91per cent points respectively;
In the Manufacturing sector, Nominal GDP growth in the Second Quarter was recorded at negative 1.02per cent, 1.09per cent points lower than the 0.07per cent recorded in the corresponding period of 2015 while the energy sector saw a negative growth of 4.26per cent, 8.48per cent points lower than the growth rate of 4.22per cent.
This according to the report was partly as a result of higher operating costs related to higher costs of inputs and alternative energy sources as well as a decline in power generated nationwide respectively.