NIGERIA'S GDP DOWN TO 3.86, INFLATION UP TO 8.7% IN FIRST QUARTER

Coordinating Minister for Economy and Minister
of Finance, Dr. Ngozi Okonjo-Iweala
Nigeria's real Gross Domestic Product (GDP)
growth rate declined to 3.86 per cent in the first
quarter of the year (Q1 2015) compared to 5.94
percent the previous quarter.
The Consumer Price Index (CPI) which measures
inflation also rose to 8.7 per cent in April
compared to 8.5 percent in March.
These figures are contained in the first quarter
report released Wednesday by the National
Bureau of Statistics.
According to the report, Nigeria's GDP growth
rate was decelerated by 2.25 percent points
from the preceding quarter and by 1.98 per cent
from the corresponding quarter of 2014.
Quarter on quarter, real GDP was lower by 11.57
per cent.
NBS figures also showed that nominal GDP in Q1
2015 was estimated at N21.04 trillion compared
to N24.20 trillion in Q4 as well as N20.16 trillion
in the corresponding quarter of 2014.
According to the bureau, relative to the
preceding quarter value of N24.20 trillion,
nominal growth was lower by 13.07 per cent.
These growth indices reflect the depressed
global oil prices, which prevailed at the period.
Oilproduction stood at 2.18 million barrels per
day (mbpd) in Q1 of 2015, remaining at the same
level as it was in the preceding quarter, and
0.08mbpd lower than the 2.24mbpd recorded in
Q1 of 2014.
It said oil sector contribution to GDP was
negative at -8.15ercent, representing further
decline of 1.55 percent from -6.60 per cent in Q1
2014.
“Nonetheless, quarter on quarter growth remained
positive, at 3.08 per cent As a share of the
economy, the Oil sector repre- sented 10.45 per
cent of total real GDP, down 1.38 per cent points
from the 11.83% recorded a year earlier, yet up
1.49 per cent from the 8.97 per cent recorded in
Q4 of 2014,” it added.
However, it stated that growth in the non-oil
sector was largely driven by the activities of
trade, crop production, other services,
construction and telecommunications.
The non-oil sector grew by 5.59 percent in real
terms in Q1 2015, representing a decline of 2.62
per cent when compared to the 8.21 per cent
recorded the previous year as well as a decline of
0.85 per cent from the value of 6.44 percent
recorded the preceding quarter.
Meanwhile, the NBS attributed the 0.2 per cent
increase in headline index to faster pace of
increases in the food and core sub- indices.
according to the NBS, core inflation increased at
a faster pace for the fourth consecutive month.
Prices rose by 7.7 percent (year-on-year), up by
0.2 percentage points from 7.5 percent in March
with the strongest increases recorded in the
Clothing and Footwear, Furnishings and
Household Equipment Maintenance; and
Restaurants and Hotels Divisions.
“On a month-on-month basis, the highest price
increases were recorded in the potatoes, yam and
other tubers, oils and fats and bread and cereal
groups. The average annual rate of change of the
food sub-index for the twelve-month period
ending in April 2015 over the previous twelve
month average was 9.5 percent. The twelve
month rate of change has held steady for eleven
consecutive months,” it said.