A Review of the Nigerian Energy Industry

Oil sector accounts for 9.8% of GDP

*Offshore oil righ.
*Offshore oil righ.

Ike Amos

23 October 2015, Sweetcrude, Abuja – The oil and gas sector accounted for 9.8 per cent of Nigeria’s Gross Domestic Products in the second quarter of 2015, data released by the National Bureau of Statistics, NBS, has revealed.

The NBS, in its GDP Report for Quarter Two 2015, stated that at 9.8 per cent, the oil and gas sector’s contribution to GDP dipped by 0.96 per cent points and 0.65 per cent from its contribution in the second quarter of 2014 and the first quarter of 2015, respectively.

According to the NBS, the country’s oil production in the period under review stood at 2.05 million barrels per day (mbpd), 5.9 per cent lower from production in the first quarter of 2015, while it was also lower relative to the second quarter of 2014 by 7.3 per cent when output was recorded at 2.21mbpd.

As a result, the NBS stated that real growth of the oil sector slowed by 6.79 per cent, year-on-year, in the second quarter of 2015, representing a decline relative to growth recorded in the second quarter of 2014, put at 5.14 per cent.

“Growth was however relatively better by 1.35% points relative to growth in Q1 of 2015. Quarter-on-Quarter, growth also slowed by 3.82 per cent,” the NBS stated.

In real terms, the oil and gas sector contributed N1.782 trillion to the GDP. Specifically, the Crude Petroleum and Natural Gas sub-sector in the Mining and Quarrying sector accounted for N1.746 trillion of the country’s GDP in the period under review while the Oil Refining sub-sector, under the manufacturing sector accounted for N35.24 billion.

This was against a contribution of N1.39 trillion and N41.5 billion by the crude petroleum and natural gas sub-sector and the oil refining sub-sector, respectively, in the first quarter of 2015.

Generally, the report stated that Nigeria’s GDP grew by 2.35 per cent, year-on-year, in real terms, lower by 1.61 per cent points from growth recorded in the preceding quarter and also lower by 4.19 per cent points from growth recorded in the corresponding quarter of 2014, while quarter on quarter, real GDP increased by 2.57 per cent.

The NBS said, “During the quarter, aggregate GDP stood at N22.859 trillion, in nominal terms, at basic prices. Compared to the Second Quarter 2014 value of N21.735 trillion, nominal GDP was 5.17 per cent higher. Nominal GDP growth was also higher relative to growth recorded in first quarter of 2015 by 0.85 per cent points.’

Continuing, the report noted that the Mining and Quarrying sector comprises four main activities which include Crude Petroleum and Natural Gas, Coal Mining, Metal ore and Quarrying and other Minerals, adding that on a nominal basis, the sector slowed in the second quarter of 2015 growing by 33.30 per cent (year on year) during the quarter.

It said, “This was substantially below growth recorded in the corresponding quarter of 2014 where growth was recorded at 13.23 per cent. Growth was however an improvement relative to first quarter of 2015 (- 46.20 per cent).

“Growth was driven by developments in Crude Oil and Natural Gas which slowed by -33.68 per cent.
The sector contributed 7.75 per cent to overall GDP during the second quarter of 2015, lower than the share recorded in the corresponding quarter of 2014 which was 12.22 per cent, yet higher than its share in the first quarter of 2015, put at 6.74 per cent.”

In this article

Join the Conversation