The Nigeria Bureau of Statistics (NBS) has announced that Nigeria’s Gross Domestic Product rose by 0.51% Year-on-Year in real timers in the first quarter of 2021, making two consecutive quarters of growth following the negative growths rates recorded second and third quarters of 2020.
NBS declared that the first quarter 2021 growth rate was slower than the 1.87% growth rate recorded in the first quarter of 2020 but higher than 0.11% recorded in the fourth quarter of 2020, indicating that the growth was slow but continuously recovering. Quarter on Quarter, real GDP rose by – 13.93% in first-quarter 2021 compared to fourth quarter 2020 reflecting a generally slower pace of economic activities at the start of the year.
The NBS said the aggregate GDP under quarter review stood at N40,014,482.74 million in nominal terms when compared to the first quarter of 2020 when N35,647,496.08 million aggregate GDP was recorded, indicating that the performance was higher to the first quarter of 2020. The nominal GDP year on year first quarter 2021 was higher by 12.25% relative to 12.01% recorded in the first quarter 2020 as well as 10.07% growth recorded in the preceding quarter.
THE OIL SECTOR
Oil, which accounts for around two-thirds of Nigeria government revenue and 90% of foreign exchange contracted by -2.21% Year on Year in the first quarter of 2021 indicating a decrease of -7.27% relative to 5.06% recorded in the first quarter of 2020. The growth rate in the first quarter of 2021 was higher by 17.55% points compared to -19.76% recorded in the fourth quarter of 2020. While on Quarter-on-quarter, The oil sector accounted for 9.25% of aggregate real GDP in the first quarter of 2021, 9.5% lower compared to the first quarter of 2020.
THE NON OIL SECTOR
The non-oil sector which comprises Telecom, Crop production, real estate, food manufacturing, and construction rose by 0.79% in the first quarter of 2021 was lower relative to -0.75% first-quarter 2020 and -0.89% compared to fourth quarter 2020. The NBS noted that Information and Communication Telecommunication was the main drive for the non-oil sector while other drivers include Agriculture, Manufacturing, Real estate Construction, and human Health Social Services. NBS stated clearly that the Non-oil sector accounted for 90.75% of aggregate GDP in the first quarter of 2021, higher than the corresponding which was 90.50% but lower than 94.13% recorded in the last quarter of 2020.