Non-oil sector still Nigeria’s main growth driver – NBS

The non-oil sector of the Nigerian economy is still the main driver of the country’s real Gross Domestic Product (GDP) growth in 2014, data available on the National Bureau of Statistics (NBS) website have shown.

Nigeria’s non-oil sector growth slowed in the fourth quarter of 2014. The sector recorded 6.44 per cent growth in real terms, lower when compared with the 8.78 per cent recorded in the corresponding period in 2013, and the 7.51 per cent recorded in the third quarter of 2014.

“As for the non-oil economy, the slowdown in growth experienced in the quarter likely reflects weaker consumer demand and some of the impact of currency devaluation,” First Bank Capital said in its February 24 note.

“We expect to see more evidence when more consumer goods companies report their Q4 2014 (end-December) results; the few which have reported their earnings showed marked y/y declines or outright losses,” it said further.

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Non-oil sector growth was driven by growth in activities recorded in crop production, trade, textile, apparel and footwear, and real estate sectors.

Crop production, which is the main driver of growth in the non-oil sector in the fourth quarter of 2014, contributed 12.55 per cent of the overall GDP growth, the NBS said.

On sectoral contribution, agriculture sector GDP grew by 6.28 per cent (year-on-year) in the fourth quarter of 2014, down by 0.19 percentage points from the fourth quarter of 2013, and 2.91 percentage points from the previous quarter of 2014, the report said.

The services sector accounted for 53.48 per cent of fourth-quarter GDP, expanding by 6.15 per cent in the period, dropping 2.23 per cent from a similar period in 2013.

The real GDP of the economy grew by 5.94 per cent (year-on-year) on an aggregate basis in the fourth quarter of 2014.

Josephine Okojie