Financial analysts have said the acclaimed impressive growth rate in the country has not transformed to enhanced welfare for the average Nigerian.
Analysts at FSDH Merchant Limited in a report made available on Monday said, “FSDH Research notes that the Nigerian economy is currently one of the fastest-growing economies in the world. However, this impressive growth rate has not translated to improved welfare for average Nigerians. “There is still high unemployment and wide-spread poverty in the country, which if not nipped in the bud, could create social dislocations and crisis.”
They noted that it was important that economic managers in Nigeria developed a framework (monetary, fiscal and structural) for achieving an inclusive economic growth, capable of reducing unemployment and the incidence of poverty.
Available data from the National Bureau of Statistics showed that the real Gross Domestic Product in Nigeria in Q1 2013 grew by 6.56 per cent, higher than 6.34 per cent recorded in the corresponding period of 2012, but lower than the growth rate of 6.99 per cent recorded in Q4 2012.
The analysis of the sectoral growth rate in Q1 2013 showed that there was a slowdown in both the oil and non-oil sectors of the economy. A further analysis showed that on a year-on-year basis, there was a decline in the rate of growth in the non-oil sub-sector; while the oil sector contracted.
Although, there was a decline in the growth rate in the agriculture, wholesale and retail trade and telecommunications sectors, these sectors remained the major drivers in the non-oil sector of the economy. Other sectors that recorded impressive growth rate are building and construction, hotel and restaurant, real estate services, manufacturing, finance and, insurance and solid minerals, amongst others.
Telecommunication and post sector recorded the highest real GDP growth rate of 24.53per cent, followed by building and construction, 15.66 per cent; hotel and restaurant, 13.61 per cent; solid minerals, 12 per cent; real estate, 10.06 per cent; business and other services, 8.63 per cent; manufacturing, 8.41 per cent; wholesale and retail trade, 8.22 per cent; agriculture, 4.14 per cent; finance and insurance, 3.61 per cent; others, 5.37 per cent.
NBS stated that the Nigerian oil sector witnessed levels of disruptions due to pipeline vandalism and bunkering activities. However, it added that the sector had benefitted immensely from the relative stability in international crude oil market price and the favourable exchange rate of the naira against the United State dollar.
The nominal GDP for Q1 2013 was estimated at N9.49tn, an increase of 3.83 per cent from N9.14tn recorded in the corresponding quarter of 2012. Oil nominal GDP accounted for 38.77 per cent, while non-oil nominal GDP contributed 61.23 per cent.