SIMPLIFIED: How Nigeria’s economic sectors fared in Q1 2020

The National Bureau of Statistics released on Monday the Gross Domestic Product report for the first quarter of this year, showing that Nigeria’s economic growth rate slowed to 1.87 percent, compared to 2.1 percent in Q1 2019 and 2.55 percent in Q4 2019.

Markets Reporters takes a look at the performances of the sectors of the economy. While some expanded, others contracted (shrank).

Oil sector

The oil sector recorded a real growth rate of 5.06 percent (year-on-year) in Q1 2020, compared to a contraction of 1.45 percent in Q1 2019 and a growth rate of 6.36 percent in Q4 2019.

The sector, which is the major source of government revenues and foreign exchange, contributed 9.50 percent to aggregate real GDP in Q1 2020, up from 9.14 percent in Q1 2019 and 7.32 percent in Q4.

The country’s daily oil production averaged 2.07 million barrels per day in Q1 2020, compared to 1.99 million bpd in the same quarter of 2019 and 2.01 million bpd in Q4 2019.

Mining and quarrying

The mining and quarrying sector grew by 4.58% (year-on-year) in Q1 2020, compared to a contraction of 1.37 per cent in Q1 2019 and a growth rate of 6.07 per cent in Q4.

The contribution of the sector to real GDP in the quarter under review stood at 9.54 per cent, up from 9.29 percent in the same period of 2019 and 7.48 per cent in Q4 2019.

Agriculture

The agricultural sector grew by 2.20 percent (year-on-year) in real terms, compared to 3.17 percent in Q1 2019 and 2.31 percent in Q4.

The sector contributed 21.96 percent to overall GDP in real terms in Q1 2020, compared 21.89 percent in Q1 2019 and 26.09 percent in Q4.

Manufacturing

Real GDP growth in the manufacturing sector stood at 0.43 per cent (year-on-year), compared to 0.81 percent in the same period in 2019 and 1.24 percent in Q4 2019.

Its real contribution to GDP was 9.65 percent, lower than the 9.79 percent recorded in Q1 2019 but higher than the 8.74 percent recorded in Q4 2019.

Construction

The real growth rate of the construction sector was 1.69 percent (year on year), compared to 3.18 percent in the same period a year ago and 1.31 per cent in Q4 2019.

Its contribution to total real GDP was 4.08 percent, compared to 4.09 per cent in Q1 2019.

Trade

The sector contracted by 2.82 percent year-on-year in Q1 2020, compared to a growth of 0.85 percent in Q1 2019 and a contraction of 0.58 in Q4 2019.

The performance of the sector continued the negative trend observed since 2019, contributing to slower growth in the non-oil sector.

In real terms, trade’s contribution to GDP was 16.08 per cent, compared to 16.86 percent in Q1 2019 and 15.99 percent in Q4 2019.

Accommodation and food services

The sector shrank by 2.99 percent in Q1 year-on-year, compared to growth rates of 4.15 percent in Q1 2019 and 2.02 percent in Q4 2019.

It accounted for 1.07 per cent of the real GDP, which is lower than its share of 1.12 percent in Q1 2019 but higher than its Q4 2019 contribution of 0.95 percent.

Information and communications

The sector recorded a growth rate of 7.65 percent in real terms, compared to 9.48 percent in Q1 2019 and 10.16 percent in Q4 2019.

It contributed 14.07 percent to total real GDP, up from 13.32 percent in Q1 2019 and 13.12 percent in Q4 2019.

Transportation and storage

The transportation and storage sector grew by 2.82 per cent in Q1 2020 in real terms, compared to 19.50 percent in Q1 2019 and a contraction of 0.80 percent in Q4 2019.

The contribution of the sector to real GDP in Q1 2020 stood at 1.77 percent, a marginal rise from 1.76 percent in Q1 2019 and 1.41 percent in Q4 2019.

Arts, entertainment and recreation

In real terms, the sector grew by 1.53 percent year on year, down from 7.12 percent in Q1 2019 and 4.85 percent in Q4 2019.

Overall, arts, entertainment and recreation contributed 0.31 percent to real GDP in Q1 2020, same as recorded one year earlier but higher than the 0.20 percent recorded in Q4 2019.

Real estate services

The real estate services sector shrank by 4.75 percent in Q1 2020, compared to a growth rate of 0.93 percent in Q1 2019 and a contraction of 3.45 percent in Q4 2019.

It contributed 5.21 percent to real GDP in Q1 2020, down from 5.57 percent in the same period a year ago.

Finance and insurance

Growth in this sector in real terms stood at 20.79 percent, down from 49.18 percent in Q1 2019 and 21.40 percent in Q4 2019.

Its contribution to real GDP was 3.81 percent, compared to 3.21 per cent Q1 2019 and 3.19 per cent in Q4 2019.

Administrative and support services

In real terms, the sector contracted by 1.90 percent (year-on-year), compared to growth rates of 1.43 percent in Q1 2019 and 1.27 percent in Q4 2019.

The sector’s contribution to real GDP was 0.02 percent in Q1 2020, unchanged from the corresponding quarter in 2019 and Q4 2019.

Education

Real growth in education year-on-year stood at 0.69 percent in Q1 2020, compared to 0.18 percent in Q1 2019 and 0.84 percent in Q4 2019.

The sector contributed 2.08 percent to total real GDP in Q1 2020, down from 2.11 percent in the same period a year ago.

Human health and social services

The sector grew by 1.06 percent (year-on-year), after contracting by 0.16 percent in Q1 2019 and 0.56 percent in Q4 2019.

Its contribution to real GDP was 0.68 percent in Q1 2020, the same as it recorded in Q1 2019 but higher than the 0.63 percent recorded in Q4 2019.