Nigeria’s oil sector growth falls by 1.89% Q1 of 2016

Following incessant attacks on oil pipelines by militants in the Niger Delta, the Nigeria’s oil sector growth has slowed by 1.89 per cent in the first quarter of 2016 as against the 8.15 per cent recorded in 2015, National Daily has gathered.

In its 2016 first quarter Gross Domestic Product (GDP) report, the National Bureau of Statistics said the oil sector contributed 10.29 per cent of the total GDP, marginally lower from the share recorded in the corresponding period of 2015, yet higher from the share in fourth quarter of 2015 by 2.24 per cent points.

It stated that in the first quarter of 2016, oil production stood at 2.11million barrels per day (mbpd), 0.05mbpd lower from production in fourth quarter of 2015. It added that oil production was also lower relative to the corresponding quarter in 2015 by 0.07mbpd when output was recorded at 2.18mbpd.

ALSO SEE: Buhari steps up oil exploration in northern Nigeria

On a nominal basis, it added that the mining sand quarrying sector slowed by 34.98 per cent during the first quarter of 2016. “This was 11.22 per cent points higher from growth recorded in first quarter of 2015, and marginally higher from growth recorded in the previous quarter.

NBS stated that the decline in year-on-year growth is attributable to the falling oil prices. The sector contributed 4.14 per cent to overall GDP in first quarter of 2016, lower than the contribution recorded in same quarter of 2015 and the preceding quarter by 2.60 per cent points and 1.04 per cent points respectively.

Reviewing the activities in the non-oil sector, the bureau stated that while crop production, trade and telecommunications and information services supported growth of the sector, growth was weighed upon by declines in manufacturing, financial institutions, and real estate.

It added that the sector slowed by 0.18 per cent in real terms in first quarter of 2016. “This was 5.77 per cent points lower from the corresponding quarter in 2014 and 3.32 per cent points from the previous quarter. In real terms, the non-oil sector contributed 89.71 per cent to the nation’s GDP, marginally higher from shares recorded in first quarter of 2016, and yet lower from fourth quarter of 2015”.