The country's economy, in terms of real Gross Domestic Product (GDP), grew by about 6.64 percent in the first quarter of 2011, with agriculture and trade sectors jointly accounting for over 58 percent of the growth, figures from the National Bureau of Statistics (NBS) has shown.
Report of the quarterly establishment survey conducted by the National Bureau of Statistics (NBS), in conjunction with the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) for the period, attributed the 0.72 percent point decline from the 7.36 percent recorded for the corresponding period last year to decrease in crude oil production, manufacturing and other key sectors.
According to the report, real growth in agriculture in the first quarter of 2011 stood at 5.45 percent, as against 5.43 per cent recorded in the corresponding period last year, with the sector's contribution to the GDP for the quarter declining to 35.29 percent from 35.68 percent for the same period in 2010.
Similarly, wholesale/retail trades, whose output rose by about 0.60 percent points, from 9.54 percent last year to about 10.14 percent for the first quarter, with its contribution to the GDP achieving a marginal increase above the corresponding period in 2010, from 22.28 percent to 23.02 percent.
While the non-oil sector remained major driver of the economy, with growth in agriculture, wholesale/retail trade, telecommunications, hotel/restaurants, building and construction sectors, the oil sector output declined, as a result of the shut-in of production by some multinational oil companies for routine maintenance of facilities as well as repairs at oil terminals as a result of vandalism.
Specifically, the non-oil sector accounted for 8.65 percent growth in real terms in the first quarter, compared to the figure of about 8.13 percent for the same period in 2010, while the oil sector contributed 16.82 percent to real GDP in the first quarter of 2011, down from 18.36 percent for last year.
The positive performance of the agricultural sector was attributed to "the early commencement of increased farming activities across the country as a result of the early rains", in addition to the sector's continued benefit from various interventions by governments, especially the agricultural credit schemes initiated by the country's apex bank.
"Agriculture in Nigeria is predominantly rain-fed. Consequently, farmers suffer tremendous crop failure whenever there are changes in rainfall patterns. In the first quarter of 2011, farmers cashed in on the early rains to explore increased improvement in farming activities," the report said.
On the wholesale and retail sector's improved output, the report attributed the improvement to the increase in wholesale and retail trade activities during the quarter following an increase in consumer demand profile.
The analysis of the growth as well as contribution of the various sectors to the GDP saw the post and telecommunications sector growing from 32.54 percent in 2010 to 32.77 percent in the first quarter of 2011, with an enhanced contribution to the GDP of 5.86 percent, from 4.7 percent level in 2010.
Trouble in petroleum sector
Curiously, the petroleum and natural gas sector, which recorded a growth of about 4.08 percent in 2010, declined by 2.29 percent, with its contribution in real terms in oil GDP in first quarter of 2011 going down from 18.36 percent last year to 16.82 percent in the first quarter of this year.
Though crude oil continues to play a prominent role in the Nigerian economy, despite the decline in production in the first quarter of 2011, when compared with the corresponding period of 2010, the report noted that the average daily production for the first quarter 2011 was 2.30 million barrels per day (mb/d) as against 2.32 mb/d produced in the first quarter of 2010.
"The decline was attributable to shut-ins by some joint venture companies to facilitate maintenance works at the terminals and pipelines vandalism in some oil producing communities", the report added.
Other key sectors' growth rates during the period showed solid minerals (11.82 percent against 11.6 percent for 2010); building and construction (13.20 percent against 13.15 percent for 2010); hotel and restaurants (12.20 percent against 12.02 percent for 2010), while real estate declined to 9.45 percent as against 9.49 percent last year.
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