The National Bureau of Statistics (NBS) has disclosed that Nigeria’s Gross Domestic Product (GDP) stood at 7.68 per cent in the fourth quarter of 2011. The Statistician-General of the Federation, Dr. Yemi Kale, disclosed this in a statement in Abuja. He said that the figure was 0.92 per cent below the 8.60 per cent recorded in the corresponding period in 2010.
“On an aggregate basis, the economy, when measured by the Real Gross Domestic Product (GDP), grew by 7.68 per cent in the fourth quarter of 2011 as against 8.60 per cent in the corresponding quarter of 2010,’’ the statement said. It said that the 0.92 percentage decrease in Real GDP growth observed in the fourth quarter of 2011 was due to production shut-down in the oil sector during the period.
“On a nominal basis, the GDP for the fourth quarter of 2011 was estimated at N10.05 trillion as against the N9.46 trillion during the corresponding quarter of 2010, thus indicating an increase,’’ the statement said. The NBS said that the country’s GDP became more relevant because of Nigeria’s objective of being among the 20 largest economies in the world by the year 2020 would be measured by GDP.
“Out of the 46 countries that had released their GDP in the fourth quarter of 2011, only Mongolia and China stood at 14.9 per cent and 8.9 per cent, respectively. Two countries, as at the time of this report, grew faster than Nigeria, and China is ahead of Nigeria in current GDP rankings,’’ the statement said. It said that many countries which Nigeria surpassed continued to either recorded negative growth or grows slower than previously estimated during the visioning process.
“Nigeria may not need the double digit growth envisaged in the vision’s blueprint despite the fact that attaining double digit growth is within its (Nigeria) capacity,’’ the statement said. NBS said that the GDP growth was driven by growth in activities of the solid minerals, telecommunications, wholesale and retail trade, building and construction, hotel and restaurant, real estate and business services sectors.
“These sectors, which make up approximately 30.8 per cent of the nation’s GDP, each grew at an average rate of over 10 per cent during the year. Most vibrant is the communication sector, which grew at an average rate of 34.8 per cent in 2011. On the other hand, the oil sector output decreased as a result of the facilities shut down in the sector,’’ the statement said.
The bureau also stated that at 218.15 million barrels, crude oil and condensate production decreased by 6.9 per cent in the fourth quarter of 2011, with an average daily production of 2.4 million barrel. It stated that the production figure was lower when compared with the 234.33 million barrel production recorded in the fourth quarter of 2010, with a corresponding average production of 2.6 million barrels per day.
“Crude oil production, with its associated gas components, resulted in a growth rate in real term of 0.40 per cent in oil GDP in the fourth quarter of 2011 compared with the 6.68 per cent recorded in the corresponding quarter of 2010. Real GDP, driven by non-oil production activities, grew at 7.68 per cent in the fourth quarter 2011, ’’ the statement said. Accordingly, the Nigerian oil sector witnessed unprecedented levels of disruption compared to recent times due to temporary shutdown of facilities such as at Bonga, a 200,000 barrel per day (bpd) facility, which supplies about 10 per cent of Nigeria’s total crude output. However, the sector benefited immensely from the high international crude oil market price and the exchange rate regime of naira against the dollar in spite of decline in daily average production in the quarter under review. The oil sector contribution of about 14.64 per cent to real GDP in the fourth quarter 2010, however, dipped in the corresponding 2011 to 13.54 per cent,’’ the statement said.
