Oil Sector Contracts by 3.95%; Economy Expands 1.5% in Q2

• Oil Sector Contracts by 3.95%; Economy Expands 1.5% in Q2

Despite the rebound in global oil prices, the Nigerian oil sector contracted by 3.95 percent year-on-year in the second quarter of the year, the National Bureau of Statistics reported on Monday.

The economy expanded by 1.5 percent year-on-year in the second quarter, higher than the 0.72 percent recorded in the second quarter of 2017 but 0.45 percent slower than the 1.95 percent filed in the first quarter of 2018. On a quarterly basis, the real economy grew by 2.94 percent.

During the quarter, aggregate gross domestic product stood at N30.69 trillion in nominal terms, representing 7.85 percent increase in nominal GDP when compared to the N28.46 trillion recorded in the preceding quarter and 13.57 percent when compared to the N27.03 trillion filed in the second quarter of 2017.

Oil Sector

In the second quarter, oil production stood at 1.84 million barrels per day (mbpd), lower than the 1.87mbpd recorded in the same quarter of 2017 and lower than the 2 mbpd filed in the first quarter of the year.

Growth in the oil sector decreased by -7.48 percent when compared to the corresponding quarter of 2017 and -18.72 percent when compared to the first quarter growth.

On a quarterly basis, the oil sector contracted by 8.34 percent and contributed 8.55 percent to total real GDP in the second quarter, down from numbers recorded in the corresponding period of 2017 and the preceding quarter, where it contributed 9.04 percent and 9.61 percent respectively.

The global oil price, Brent Crude, rose to $76.98 a barrel during the quarter.

Non-oil Sector

The non-oil sector contributed 91.45 percent to the economy in the second quarter, higher than the 90.39 percent filed in the first quarter. The sector grew by 2.05 percent in real terms.

According to the report, the non-oil sector was mainly driven by the Information and communication services. Other notable drivers included Construction, Agriculture, Transportation and Storage and Other Services.