Nigeria’s GDP growth during the first quarter of 2012 stood at 6.17 percent, the National Bureau of Statistics said on Wednesday.
The Statistician-General of the Federation, Dr. Yemi Kale, disclosed that the figure showed a 0.96 percentage decrease from the 7.13 percent recorded in the corresponding quarter of 2011.
“The nominal GDP for the first quarter of 2012 was estimated at N9,142,858.51 as against the N8,311,227.61 recorded in the corresponding quarter of 2011,” Kale said.
According to the NBS, the higher costs of production and prevailing security concerns contributed to the decline.
“The decrease was as a result of decrease in oil and non-oil sectors, manufacturing, wholesale and retail and telecommunication, among others,” Kale said.
“The quarter witnessed a decline in economic activity, due largely to the partial removal of subsidy on petrol, the subsequent civil protest and weaker consumer demand following the higher price levels across major segments of the economy.
“Estimated crude oil and condensates production decreased in the period when compared with the level produced within the corresponding quarter of 2011.”
The decrease in crude oil production, with its associated gas component, resulted in a decline in real terms of -2.32 percent in oil GDP growth.
According to the Statistician-General, non-oil sector continued to be a major driver of the economy in the first quarter of 2012, in spite of its decline when compared with the corresponding quarter in 2011.
The sector recorded a 7.93 percent growth in real terms in the first quarter of 2012, compared with 8.73 percent for 2011.
“While crude oil continues to play a prominent role, the average daily production in million barrels per day (mbpd) for the first quarter of 2012 was 2.35 mbpd, as against 2.51 mbpd produced in the first quarter of 2011,” Kale said.
“The 0.8 percentage point decrease in growth was as a result of decrease in some of the non-oil sectors such as manufacturing, wholesale and retail trade. The finance and insurance sector recorded a growth of 3.53 percent in the first quarter of 2012, compared with the 4.11 percent recorded in same period of 2011.”
He added that the wholesale and retail trade sector contributed 23.39 percent of the total GDP in the first quarter of 2012, against the 23.02 percent recorded in first quarter of 2011.
However, the sector recorded a decline in the growth rate of 8.35 percent as against 10.13 percent in the corresponding quarter of 2011, due to decrease in consumer demand.
“The telecommunications sector recorded 32.83 per cent in the first quarter of 2012, as against 33.36 percent recorded in 2011,” Kale said.
“The incessant volatility in service delivery affected the performance of the sector in the first quarter of 2012.”
Sly is a social commentator who resides in Lagos and currently works as a relationship manager for a financial institution.
