Nigerian economy loses momentum in Q2 as GDP slows to 1.50 Pct

Nigeria, Africa’s top economy Gross Domestic Products (GDP) grew 1.50 percent year on year in the second quarter of the year down from 1.95 percent growth achieved in the first three months of the year, the National Bureau of Statistics (NBS) data showed on Monday.

Analysts traced the slow down in economic growth to the uncertainty engendered by the delay in approving the 2018 fiscal policy, which was not ready until June.

Nigeria's parliament approved 9.1 trillion naira budget estimate for 2018 in June after delaying the approval for more than seven months, causing major hiccups in the economy and slow down the government projections.

Nigeria’s economy, which largely dependent on its rich crude reserves, began climbing out of its first recession in 25 years in 2016 as President Muhammadu Buhari’s government implemented the early stages of a turnaround plan.

However, the pace of recovery has been relatively slow, and since the beginning of this year has again started to dip.
The oil sector shrank 3.95 percent in the second quarter, the NBS said. Oil production dipped to 1.84 million barrels per day (mpbd) from 2 mpbd in the first quarter.
“For the first time since the exit from recession, growth was driven by the non-oil sector which grew by 2.05 percent,” the bureau said.
That was the strongest growth in non-oil GDP since the final quarter of 2015.
Leading the expansion were the transportation, construction and electricity sectors, while agriculture growth dipped to 1.3 percent from 3 percent.
Buhari’s record on managing the economy is likely to be closely scrutinised if he goes ahead with plans to seek a second term in office next year.