Non-oil sector keeps rising as Q3 GDP grows 1.81%

The non-oil sector of the economy continued its growth pattern in the third quarter of 2018, moving from 2.05% recorded in the second quarter to 2.32%.

According to the third quarter gross domestic product report released by the National Bureau of Statistics on Wednesday, the nation’s GDP moved to 1.81% from 1.50% in the second quarter.

“The nation’s Gross Domestic Product (GDP) grew by 1.81% (year-on-year) in real terms in the third quarter of 2018. Compared to the third quarter of 2017 which recorded a growth of 1.17%, there is an increase of 0.64% points,” the report read.

“The second quarter of 2018 had a growth rate of 1.50% showing a rise of 0.31% points. Quarter on quarter, real GDP growth was 9.05%.

“In the quarter under review, aggregate GDP stood at N33,368,049.14 million in nominal terms. This performance is higher when compared to the third quarter of 2017 which recorded a GDP aggregate of N29,377,674.03 million thus, presenting a positive year on year nominal growth rate of 13.58%.

“This growth rate is higher relative to growth recorded in the third quarter of 2017 by 2.88% points and higher than the proceeding quarter by 0.01% points with growth rates of 10.70% and 13.57% respectively.”

Commenting on the figures, Lukman Otunuga, FXTM research analyst, said the growth recorded in the non-oil sector is an indication that Nigeria is on the quest break away from oil reliance.

“With the Non-Oil sector growing by 2.32% in real terms during Q3, Nigeria continues to showcase to the global arena that it remains on a quest to break away from oil reliance.

“With economic growth expected to gain momentum next year on the back of increasing government spending ahead of the presidential elections, Nigeria’s outlook remains encouraging. OPEC’s deal to cut oil production by 1.2 million barrels a day is seen offering near-term support to oil – a scenario that will most likely support Nigeria’s government revenues and the Naira exchange.”

In October, the World Bank reduced its projection for Nigeria’s GDP growth to 1.9% from 2.1% saying that the clash between farmers and herdsmen will affect economic recovery.

“In Nigeria, declining oil production and contraction in the agriculture sector partially offset a rebound in the services sector and dampened non-oil growth, all of which affected economic recovery,” the Bretton Wood institution said.