Friday, 29 July 2016

Nigeria’s oil sector growth falls by 1.89 per cent

In Oil & Companies News 29/07/2016

The real growth of down Nigeria’s oil sector slowed by 1.89 per cent in first quarter of 2016, due to the reduction in the country’s daily production occasioned by pipeline vandalism.
The National Bureau of Statistics, which made this disclosure in its first Quarter 2016 Gross Domestic Product (GDP) report, note that this represents an improvement relative to growth recorded in the preceding year of 2015 when growth slowed by 8.15 per cent.
According to the bureau, the oil sector contributed 10.29 per cent of the total GDP, marginally lower from the share recorded in the corresponding period of 2015, yet higher from the share in fourth quarter of 2015 by 2.24 per cent points.
It stated that in the first quarter of 2016, oil production stood at 2.11million barrels per day (mbpd), 0.05mbpd lower from production in fourth quarter of 2015.
It added that oil production was also lower relative to the corresponding quarter in 2015 by 0.07mbpd when output was recorded at 2.18mbpd.
On a nominal basis, it added that the mining sand quarrying sector slowed by 34.98 per cent during the first quarter of 2016.
“This was 11.22 per cent points higher from growth recorded in first quarter of 2015, and marginally higher from growth recorded in the previous quarter.
“The decline in year-on-year growth is attributable to the falling oil prices. The sector contributed 4.14 per cent to overall GDP in first quarter of 2016, lower than the contribution recorded in same quarter of 2015 and the preceding quarter by 2.60 per cent points and 1.04 per cent points respectively.
“In real terms, Mining and Quarrying sector slowed at 2.96 per cent in first quarter of 2016, a relative improvement from first quarter of 2015 by 4.94 per cent points and fourth quarter of 2015 by 5.08 per cent points. While crude oil output weighted on growth, the sector was supported by a substantial improvement in output in Metal Ores. The contribution of Mining and Quarrying to Real GDP in first quarter of 2016 was 10.34 per cent, marginally lower relative to the corresponding quarter of 2015 yet higher from the previous quarter by 2.13 per cent points”, it added.
Reviewing the activities in the non-oil sector, the bureau stated that while crop production, trade and telecommunications and information services sup- ported growth of the sector, growth was weighed upon by declines in manufacturing, financial institutions, and real estate.
It added that the sector slowed by 0.18 per cent in real terms in first quarter of 2016. “This was 5.77 per cent points lower from the corresponding quarter in 2014 and 3.32 per cent points from the previous quarter. In real terms, the non-oil sector contributed 89.71 per cent to the nation’s GDP, marginally higher from shares recorded in first quarter of 2016, and yet lower from fourth quarter of 2015”.

Source: Today