Nigerian economic growth rate slows to 1.94 percent

04 Sep 2019
Financial Nigeria

Summary

The slowdown in the non-oil GDP largely depressed the effect of the 5.15 percent oil growth.

Nigerian President Muhammadu buhari

The Nigerian gross domestic product (GDP) growth rate slipped to 1.94 percent in Q2 2019, according to data released by National Bureau of Statistics (NBS), which compares unfavourably with 2.10 percent growth in Q1.

Non-oil GDP growth plunged to 1.64 percent in Q2 2019, the lowest since Q1 2018. Growth in the agriculture sector moderated to 1.79 percent; the services sector also slowed down to 1.94 percent growth. However, manufacturing posted a negative growth of -0.13 percent. The negative growth extended to real estate (-3.84 percent) and trade (-0.25 percent), among others.

The slowdown in the non-oil GDP largely depressed the effect of the 5.15 percent oil growth. However, this significant growth number in the oil component of the GDP was as a result of the low base of the sector in Q2 2018.

Analysts at CardinalStone, an investment management company based in Lagos, said the weakness in the non-oil sector reflected the inadequacy of non-oil sector stimulation and reforms.


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