Nigeria’s Gross Domestic Product grew by 0.51 per cent (year-on-year) in Q1, 2021.
This marks the second consecutive quarterly growth for the nation, following the negative growth rates recorded in the second and third quarters of 2020.
Q1’s growth rate was slower than 1.87 per cent growth rate recorded in Q1 2020 but higher than 0.11 per cent recorded in Q4 2020. This indicates a slow recovery process.
However, based on quarter on quarter, real GDP grew at -13.93 per cent in Q1 compared to Q4 2020. This indicated the slow-paced nature of economic activities at the start of the year.
GDP is N40.01 trillion in nominal terms, which is higher than Q1 202 which recorded aggregate GDP of N35.08 trillion a yoy nominal growth rate of 12.25 per cent. The nominal GDP growth rate for the quarter is higher relative to 12.01 per cent growth recorded in Q1 2020, as well as 10.07 per cent growth recorded in the preceding quarter. Real GDP for the quarter is N16.83 trillion.
The GDP for Oil contracted -2.21 per cent in Q1 (-19.76 per cent in Q4 2020; 5.06 per cent in Q1 2020) while non-Oil GDP grew 0.79 per cent in Q1 2021(1.69 per cent in Q4 2020; 1.55 per cent in Q1 2021). In the quarter, average daily oil production stood at 1.72 million barrels per day, or 0.35mbpd lower than the average daily production of 2.07mbpd recorded in the same quarter of 2020 but higher than the production volume of 1.56mbpd recorded in the fourth quarter of 2020.
Growth in the non-oil sector was driven by the Information and Communication (Telecommunication) sector while other drivers include Agriculture (Crop Production), Manufacturing (Food, Beverage & Tobacco), Real Estate, Construction and Human Health & Social Services. The non-oil sector accounted for 90.75 per cent of aggregate GDP in Q1 in real terms. This is higher than its share in Q1 2020 which was 90.50 per cent, but lower than 94.13 per cent recorded in the Q4 2020.
The Information and Technology sector contributed 7.86 per cent to GDP (a decrease from 17.64 per cent in Q4 2020 and 9.71 per cent in Q1 2020). The IT sector contributed 9.91 per cent to total nominal GDP in Q1 2021, lower than the rate of 10.31 per cent recorded in the same quarter of 2020 and 10.58 per cent contributed in the preceding quarter. The sector recorded a growth rate of 6.47 per cent in real terms, year on year.