GDP grew by 2.98% in one year- NBS
Patience Ikpeme
Nigeria’s Gross Domestic Product (GDP)grew by 2.98% in one year in real term first quarter 2024, National Bureau of Statistics NBS disclosed.
This was contained in its document titled: “National Gross Domestic Product Q1 2024.”
The document also said the growth rate is higher than the 2.31% recorded in the first quarter of 2023 and lower than the fourth quarter of 2023 growth of 3.46%.
NBS said: “Nigeria’s Gross Domestic Product (GDP) grew by 2.98% (year-on-year) in real terms in the first quarter of 2024.
“This growth rate is higher than the 2.31% recorded in the first quarter of 2023 and lower than the fourth quarter of 2023 growth of 3.46%.”
The report said the performance of the GDP in the first quarter of 2024 was driven mainly by the Services sector, which recorded a growth of 4.32% and contributed 58.04% to the aggregate GDP.
It said the agriculture sector grew by 0.18%, from the growth of -0.90% recorded in the first quarter of 2023.
The growth of the industry sector, said NBS, was 2.19%, an improvement from 0.31% recorded in the first quarter of 2023.
The Bureau said, in terms of share of the GDP, the services sector contributed more to the aggregate GDP in the first quarter of 2024 compared to the corresponding quarter of 2023.
During the quarter under review, aggregate GDP stood at N58,855,142.27 billion in nominal terms. The performance was higher when compared to the first quarter of 2023 which recorded aggregate GDP of N51,242,151.21 billion, indicating a year-on-year nominal growth of 14.86%.
In the oil sector, the country recorded an average daily oil production of 1.57 million barrels per day (mbpd), higher than the daily average production of 1.51mbpd recorded in the same quarter of 2023 by 0.06mbpd and higher than the fourth quarter of 2023 production volume of 1.55 mbpd by 0.02mbpd in first quarter of 2024.
Relatedly, “non-oil sector grew by 2.80% in real terms during the reference quarter (Q1 2024). The rate was higher by 0.02% points compared to the rate recorded in the same quarter of 2023 and 0.28% points lower than the fourth quarter of 2023.
Non oil sector was driven in the first quarter of 2024 mainly by Financial and Insurance (Financial Institutions); Information and Communication (Telecommunications); Agriculture (Crop production); Trade; and Manufacturing (Food, Beverage, and Tobacco), accounting for positive GDP growth. In real terms, the non-oil sector contributed 93.62% to the nation’s GDP in the first quarter of 2024, lower than the share recorded in the first quarter of 2023 which was 93.79% and lower than the fourth quarter of 2023 recorded as 95.30%”
Commenting on NBS’ GDP result, Analyst and commentator on economy Issues, Prof. Uche Uwaleke of Nassawa state Unviersity attributed unimpressive GPD performance to Central Bank aggressive tightening measures.
Uwaleke said aggressive hike in monetary policy rate by the CBN in February 2024 had a negative impact on output in Q1 2024.
He said it was high time the government adopted structural change strongly recommended by the United Nations Conference on Trade and Development( UNCTAD) as one of the ingredients of building productive capacities.
“Just like in Q4 2023, when growth was driven by the oil sector, growth in Q1 2024 was also driven by the oil sector at 5.70%. Oil sector growth was aided partly by the increase in crude oil production during the quarter (from 1.55mbpd in the previous quarter to 1.57mbpd)”
“The Non-oil sector performance was powered by the Services sector chiefly Financial services and ICT. Manufacturing and agriculture sectors appeared hugely impacted by economic headwinds during the quarter. Growth rates were a mere 1.49% and 0.18% respectively. The Agric sector (comprising 4 activities although dominated by crop production) tanked significantly in Q1 2024 to 0.18% from 2.10% in previous quarter”.
“With the agric sector’s dismal performance, it is easy to understand why food inflation has climbed to over 40% as of April 2024. The financial sector grew by 31.24%, a clear demonstration that it is detached from the productive sectors of the economy”
“In my view, this identified growth pattern, weighted in favour of the services sector, is not healthy for a developing economy such as ours. Little wonder, economic growth does not appear inclusive reflecting in rising unemployment and poverty levels. It is time we reset this faulty economic structure, leveraging technology, in favour of the productive sectors: Industry and Agriculture”, he said
