By Franklin Alli
WHAT does the quarterly and yearly contributions of the Nigerian manufacturing and Agricultural sector contributions to the country’s Gross Domestic Products (GDP), revealed?
First, let’s Analize the contributions of Agriculture to the GDP.
In doing this, we shall rely on data sourced from the country’s Statistics body, National Bureau of Statistics, nbs.
Four sub-activities make up the Agricultural sector: Crop Production, Livestock, Forestry and Fishing.
The sector grew by 17.76% year-on-year in nominal terms in Q2 2019, showing an increase of 7.12% points from the same quarter of 2018 but a decline of –4.81% points compared to the preceding quarter.
Crop Production remains the major driver of the sector, accounting for 88.56% of overall nominal growth of the sector In the second quarter of 2019.
Quarter on quarter, growth stood at 11.71%. Agriculture contributed
19.43% to nominal GDP in Q2 2019, higher than the rates recorded for the second quarter of 2018 and the
first quarter of 2019, at 18.78% and 19.10% respectively.
The agricultural sector, in the second quarter of 2019, grew by 1.79% (year-on-year) in real terms, an
increase of 0.60% points from the corresponding period of 2018, but a decrease of –1.38% points from the
preceding quarter which recorded a growth rate of 3.17%.
However, the sector contributed 22.82% to total GDP in real terms, lower than the contribution in the
second quarter of 2018 but higher than the first quarter of 2019 which stood at 22.8% and 21.89%
The Manufacturing sector is comprised of thirteen activities: Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood products; Pulp Paper and Paper products;
Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic, Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.
Nominal GDP growth of the Manufacturing sector in the second quarter of 2019 was recorded at 37.79% (year-on-year), 18.27% points higher than figures recorded in the corresponding period of 2018 (19.52%) and 1.34% points higher than the preceding quarter figure of 36.45%.
Quarter on Quarter growth of the
sector stood at 11.53%
The contribution of Manufacturing to Nominal GDP in the current quarter was 11.49%, higher than figure recorded in the corresponding period of 2018 at 9.49% and the first quarter of 2019 at 11.31%.
In Q2 2019, real GDP growth in the manufacturing sector was –0.13% (year on year), lower than the
corresponding quarter of 2018 and Q1 2019.
The growth rate of the sector, on a quarter-on-quarter basis,
stood at –4.41%.
The contribution to real GDP in Q2 2019 was 9.10%, which is lower than 9.29% recorded in the previous year and 9.79% recorded in first quarter 2019.
From the foregoing, it’s clear agriculture contributions of 22.82% to total GDP in real terms , is light years ahead of manufacturing being 9.10%.