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The National Bureau of Statistics (NBS) has reported that Nigeria’s Gross Domestic Product (GDP) grew by 2.38 per cent year-on-year in the fourth quarter of 2018, faster than the 1.81 per cent recorded in the previous quarter. The growth also represents an increase of 0.27 percentage points, when compared to the 2.11 per cent recorded in Q4 2017.

According to the Nigerian Gross Domestic Product Report for Q4 and Full Year 2018 released today, the country's annual GDP growth rate in 2018 was 1.93 per cent, compared to the 0.82 per cent recorded in 2017. Aggregate GDP for Q4 in nominal terms stood at N35,230,607.63 million, which is higher than N31,275,354.08 million recorded in Q4 2017.

The latest GDP figures shows the oil sector accounted for 8.60 per cent of the aggregate real GDP in 2018, slightly lower than the 8.67 per cent it contributed in 2017.  The real GDP growth of the oil sector stood at 1.14 per cent. In Q4 2018, the oil sector recorded a real GDP growth rate of -1.62 per cent, representing an increase of 1.29 percentage points from the preceding quarter.

Average daily oil production in Q4 2018 stood at 1.91 million barrels per day (mbpd), a decline from the 1.94 mbpd recorded in the preceding quarter as well as the 1.95 mbpd recorded in Q4 2017.

The statistical agency reported that the non-oil sector grew by 2.70 per cent in real terms in Q4 2018, representing a 0.38 percentage points increase from the preceding quarter and 1.25 percentage points higher than the rate recorded in Q4 2017.

The non-oil sector, according to the report, contributed 91.40 per cent to Nigeria’s real GDP in 2018, compared to the 91.33 per cent recorded in 2017. The key performing areas included transport, information and communication, electricity, water, and arts and entertainment. In 2018, the non-oil sector recorded a growth rate of 2.00 per cent.

Earlier this week, Bloomberg analysts predicted Nigeria’s Q4 growth rate will come in between 1.7 per cent and 2.7 per cent.

“The fourth-quarter number was stronger than I expected, primarily due to a stronger reading in telecoms than anticipated,” said Mark Bohlund, Africa economist with Bloomberg Economics. “It is possible that it could help Buhari to convince voters that the economy is finally recovering more forcefully from the 2016 recession. But Buhari’s four-year term has still seen the weakest growth in the living memory of a large share of the electorate – that’s since the early 1990s.”