By Modupe Gbadeyanka
Latest figures released by the National Bureau of Statistics (NBS) has revealed that the country’s real Gross Domestic Product (GDP) contracted by 1.30 percent (year-on-year) from N18.5 billion in fourth quarter of 2015 to N18.3 billion in the fourth quarter of 2016.
Also, the agency disclosed that for the full year 2016, Nigeria’s GDP contracted by 1.51 percent, indicating real GDP of N68 billion for the year.
The NBS stated that the decline recorded in the fourth quarter of 2016 was less severe than the decline recorded in the previous quarter of 2.24 percent, but stressed that it was nevertheless lower than the growth rate recorded in the final quarter of 2015 of 2.11 percent.
According to the report, quarter on quarter, real GDP increased by 4.09 percent, which partly reflects seasonal factors as well as a rise in the general price level.
The agency pointed out that the contraction reflects a difficult year for Nigeria, which included weaker inflation-induced consumption demand, an increase in pipeline vandalism, significantly reduced foreign reserves and a concomitantly weaker currency, and problems in the energy sector such as fuel shortages and lower electricity generation.
It said further that during the last quarter of 2016, nominal GDP was N29.3 million at basic prices, which represents year on year nominal growth of 12.97 percent.
The NBS stated that in contrast to real growth, this is 5.84 percent points higher than the rate recorded in the same quarter of 2015, implying that the GDP deflator increased faster than the earlier period.
It noted that for full year 2016, aggregate nominal GDP stood at N101,598,482.13 compared to N94,144,960.45.
It said the Nigerian economy can be more clearly understood according to the oil and non-oil sector classifications.
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