GDP REPORT: Nigeria’s Oil Sector Down By -2.91% In Q3
From the Gross Domestic Product, GDP report released on Monday, December 10th by the National Bureau of Statistics, NBS, all is not well with the oil sector.
Within the period under review – July to September – Nigeria recorded an average daily oil production of 1.94 million barrels per day, mbpd, lower than the daily average production of 2.02 mbpd recorded in the same quarter of 2017 by -0.08 mbpd.
But this is higher than that of the second quarter of 2018 production volume of 1.84 mbpd by 0.10mbpd.
Nigeria has been targeting at least 2 mbpd of crude production since the beginning of this year.
So, the GDP report said real growth of the oil sector was –2.91% (year-on-year) in Q3 2018 indicating a decrease of –25.94% points relative to rate recorded in the corresponding quarter of 2017.
Growth increased by 1.04% points when compared to Q2 2018 which was –3.95%.
Meanwhile, quarter-on-quarter, the oil sector recorded a growth rate of 19.64% in Q3 2018. The oil sector contributed 9.38% to total real GDP in Q3 2018, down from figures recorded in the corresponding period of 2017 and up compared to the preceding quarter, where it contributed 9.84% and 8.55% respectively.
So, what does this all mean to the country?
Well, its shows that Nigeria is milking an ageing cow, and relying on it is no longer sustainable.
Instead, more attention should be paid to the non-oil sector which grew by 2.32% in real terms during the reference quarter.
Such sectors include Information and Communication, Agriculture, Manufacturing, Trade, Transportation and Storage and Professional, Scientific and Technical Services.
These sectors, according to NBS, in real terms, “contributed 90.62% to the nation’s GDP, higher from share recorded in the third quarter of 2017 recorded as 90.16% and lower than the second quarter of 2018 recorded as 91.45%”.
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