Nigeria’s Gross Domestic Product grew by 0.51 Year-on-Year in real terms in the first quarter of 2021 amid a slow but continuous recovery.
This is according to the data released on Sunday by the National Bureau of Statistics.
The data showed that the growth was slower in Q1 2021 than the 1.87 per cent recorded in Q1 2020, but higher than 0.11 per cent recorded in Q4 2020.
The authorities have pushed in several billions of naira as stimulus packages to help households and businesses cope with the effect of the Coronavirus Disease and revive the fragile economy.
Following the negative growth rates recorded in the second and third quarters of 2020 that dragged the country into recession, the Q1 2020 result represents two consecutive quarters of growth.
On quarter-on-quarter, the country’s GDP grew at -13.93 per cent in real terms in Q1 2021 compared to Q4 2020.
While aggregate GDP stood at N40.014m in nominal terms, relative to N35.65m in Q1 2020, indicating a Y-o-Y nominal growth rate of 12.25 per cent, nominal GDP growth rate in Q1 2021 was also higher relative to 12.01 per cent growth recorded in Q1 2020 as well as the 10.07 per cent growth recorded in the preceding quarter.
During the quarter under review, average daily oil production fell to 1.72 million barrels per day, or 0.35mbpd lower than the average daily production of 2.07mbpd recorded in Q1 2020, but higher than the production volume of 1.56mbpd recorded in Q4 2020.
The oil sector recorded real GDP growth rate of –2.21 per cent in Q1 2021 or –7.27 per cent decrease relative to the 5.06 per cent growth recorded in Q1 2020, and compared to -19.76 per cent recorded in Q4 2020, growth in Q1 2021 was higher by 17.55 per cent points, the data also showed.
With -0.75 per cent points lower, the non-oil sector grew by 0.79 per cent in real terms in Q1 2021, compared to the -0.89 per cent rate recorded in Q1 2020.
This was driven mainly by the Information and Communication Technology, agriculture (crop production), manufacturing (food, beverage and tobacco), real estate, construction, and human health and social services sectors.
The financial and insurance services accounted for 87.55 per cent and 12.45 per cent respectively in real terms in Q1 2021.
The sector grew at 15 per cent in nominal terms Y-o-Y with growth rate of financial institutions at 2.78 per cent and insurance at –2.08 per cent.
The overall rate was lower than that of Q1 2020 by –21.81 per cent points, but 3.25 per cent points higher than Q4 2020.
Commenting on the NBS report, analysts at Cowry Asset Management said, “The relatively high inflation and interest rates, as well as the worsening insecurity would limit the potential GDP growth in 2021.”
