Breeze Reporters

Non-Oil Sector On The Rise As Nigeria Records Economic Growth

Nigeria has recorded 1.81 per cent Gross Domestic Product (GDP) growth rate for the third quarter of 2018, the National Bureau of Statistics (NBS) said in a report released on Monday.

Gross Domestic Product is the monetary measure of the market value of all the final goods and services produced in a period of time, usually annually or quarterly.

According to the Gross Domestic Product Report (Q3, 2018 ) report released by the bureau on Monday, there is an increase of 0.64 per cent points, compared to the third quarter of 2017, which recorded a growth of 1.17 per cent.

In nominal terms, the report put the value of the country’s economic output during the third quarter at N33.36 trn which it rated high, when compared to the third quarter 2017 GDP output of N29.37 trn.

“This performance is higher when compared to the third quarter of 2017 which recorded a GDP aggregate of N29, 377, 674. 03 million thus, presenting a positive year on year nominal growth rate of 13.58%”.

“This growth rate is higher relative to growth recorded in the third quarter of 2017 by 2.88% points and higher than the proceeding quarter by 0.01% points with growth rates of 10.70% and 13.57% respectively. For clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.”

Reacting to the figures, Lukman Otunuga, FXTM research analyst, said the growth recorded in the non-oil sector is an indication that Nigeria is on the quest break away from oil reliance.

“With the Non-Oil sector growing by 2.32% in real terms during Q3, Nigeria continues to showcase to the global arena that it remains on a quest to break away from oil reliance.

“With economic growth expected to gain momentum next year on the back of increasing government spending ahead of the presidential elections, Nigeria’s outlook remains encouraging. OPEC’s deal to cut oil production by 1.2 million barrels a day is seen offering near-term support to oil – a scenario that will most likely support Nigeria’s government revenues and the Naira exchange.”

Staff Writer

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