Connect with us

Economy

Non-Oil Sector Growth Drops to -0.36%

Published

on

Non oil

Amidst efforts by the Federal Government to diversify the economy from oil, the prospects of earning revenue from the non-oil sector are fast fading, owing to the dismal performance of the sector.

Data from Bloomberg showed that all activities in the non-oil sector recorded varying degrees of declining growth relative to real Gross Domestic Product in the first quarter of 2016.

Specifically, the data indicated that the sector dropped from 2.11 per cent in the fourth quarter of 2015 to -0.36 per cent in the first quarter of 2016.

A further breakdown of the figure showed that in the agriculture, forestry and fishing sub sector, crop production dropped from 3.3 per cent in the Q4, 2015 to three per cent in the Q1 2016; livestock was 5.6 per cent in the Q4 2015, it dropped to 3.9 per cent in the Q1 2016. Forestry fell from four per cent in the Q4 2015 to 2.3 per cent in the Q1 2016. Fishing was 5.4 per cent in the Q4 2015, it dropped to 3.3 per cent in the Q1 2016.

The mining and quarrying, crude petroleum and natural gas sector had a negative decline of -8.3 per cent in the fourth quarter of 2015; it improved slightly to -1.9 per cent in the first quarter of 2016.

In the sector, coal mining reduced from 7.7 per cent in the Q4 2015 to 3.3 per cent in the Q1 2016. Metal ores increased from 6.9 per cent to 57 per cent while quarrying and other minerals, which stood at 5.6 per cent in the Q4 2015, recorded a negative (-88.9 per cent) in the Q1 2016.

In the manufacturing sector, oil refining maintained a negative of -22.6 per cent in the Q1 2016, the same figure that was recorded for the Q4 2015.

Cement, which witnessed huge growth last year, dropped sharply from a high of 21.3 per cent in the Q4 2015 to a negative of -4.4 per cent in the Q1 2016.

Food, Beverage and Tobacco sector increased in negative growth from -5.6 per cent in the Q4 2015 to -11.1 in the Q1 2016. Textile and apparel, which recorded 2.8 per cent growth in the Q4 2015, declined to -3 per cent.

Chemical and pharmaceutical products declined from 17.2 per cent in the Q4 2015 to 5.9 per cent in the Q1 2016; non-metallic mineral products dipped from 12.7 per cent in the Q4 2015 to 5.5 per cent in the Q1 2016; plastic and rubber products also plummeted from 15.7 per cent in Q4 2015 to 4.8 per cent in Q1 2016.

Wholesale and retail trade also witnessed a decline from 4.7 per cent in the Q4 2015 to two per cent in the Q1 2016.

In general, real GDP growth of the manufacturing sector slowed by 8.39 per cent in the Q1 2016 according to the National Bureau of Statistics.

The report added that nominal GDP growth of manufacturing in the Q1 2016 slowed by 2.98 per cent (year-on-year), representing 4.23 per cent points lower from growth recorded in the Q1 2015 and 9.91 per cent points lower from growth in the Q4 2015 as a result of slower growth in 10 of 13 activities in the sector.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Nigeria’s Real Estate Sector Shrinks by 8.06% in the Third Quarter -NBS

Published

on

Economic uncertainty plunged Nigeria’s real estate sector by 8.06 percent in the third quarter of the year, according to the National Bureau of Statistics (NBS).

Nigeria’s statistics office said “In nominal terms, real estate services recorded a growth rate of –8.06 per cent in the third quarter of 2020, indicating a decline of –11.78 per cent points compared to the growth rate at the same period in 2019, and by 9.12 per cent points when compared to the preceding quarter.

“Quarter-on-quarter, the sector growth rate was 18.92 per cent.

“Real GDP growth recorded in the sector in Q3 2020 stood at -13.40 per cent, lower than the growth recorded in third quarter of 2019 by –11.09 per cent points, but higher relative to Q2 2020 by 8.59 per cent points.

“Quarter-on-quarter, the sector grew by 17.15 per cent in the third quarter of 2020.

“It contributed 5.58 per cent to real GDP in Q3, 2020, lower than the 6.21 per cent it recorded in the corresponding quarter of 2019.”

Nigeria’s economy contracted by 2.48 percent in the first nine months following a 6.10 percent and 3.62 percent contraction in the second and third quarters respectively.

Continue Reading

Economy

Nigeria Requires N400 Billion Annually to Maintain Federal Roads -Senator Bassey

Published

on

lekki

The Chairman of the Senate Committee on road maintenance, Senator Gersome Bassey, on Friday said Nigeria requires about N400 billion annually to maintain federal roads across the country.

The Senator, therefore, described the N38 billion budgeted for road repairs in the 2021 proposed Budget as grossly inadequate. According to him, nothing meaningful could be achieved by the Federal Roads Maintenance Agency (FERMA) with such an amount.

He said, “For the 35 kilometres federal roads in the country to be motorable at all times, the sum of N400bn is required on yearly basis for maintenance.”

Bassey “What the committee submitted to the Appropriation Committee in the 2021 fiscal year is the N38bn proposed for it by the executive which cannot cover up to one quarter of the entire length of deplorable roads in the country.

“Unfortunately, despite having the power of appropriation, we cannot as a committee jerk up the sum since we are not in a position to carry out the estimation of work to be done on each of the specific portion of the road.

“Doing that without proposals to that effect from the executive, may lead to project insertion or padding as often alleged in the media.”

Continue Reading

Economy

Scarcity of Day-Old-Chicks Cripple Poultry Farmers in Akwa Ibom

Published

on

poultry-farmers

Despite billions of Naira spent on Akwa Prime Hatchery and Poultry Limited by the Executive Governor of Akwa Ibom State, Udom Emmanuel, poultry farmers in the state said they had to order day-old-chicks from outside the state as the 200,000 capacity poultry farm developed specifically to make day-old-chicks and other poultry products available at affordable prices is almost empty at the moment.

The farmers expressed frustration over many challenges they face in the course of bringing day-old-chicks from outside the state. Usually, Ibadan, Enugu and sometimes as far as Kaduna, while the hatchery built and inaugurated in 2016 remains idle.

Mr Ekot Akpan, one of the poultry farmers who spoke with the pressmen said the state had not had it this bad.

Akpan said: “For the 12 years that I have been in poultry farming, this is the first time that poultry farmers have been so harshly affected by both economic and non-economic factors. And, quite unfortunately, nobody is available to offer any explanation.

“Farmers have been left at the whims and caprice of owners of the means of production.

“There seems to be no government regulation of the poultry industry. How, do you explain a situation where you wake up suddenly and the price of a day old chick is selling for N600, a bag of feed goes as high as N6,000.

“And, in a state that government claims to be pursuing agriculture as one of his cardinal programmes.

“For instance, in 2016, the state government said it has constructed an hatchery, and the intention according the government was to ensure availability of day old chicks at affordable price to farmers, but, quite, unfortunately, that effort has not yielded any tangible result.

“Farmers are still getting their day old chicks from Ibadan, Kaduna, and Enugu. So, the question now is where is the hatchery?

“One would have expected that farmers would be buying old chicks at humane prices, but, from all indications they acclaimed hatchery is a ruse. So, which one is the Akwa Prime Hatchery producing,” he said.

Continue Reading

Trending