Nigerian economy grew by 6.28 per cent in the second quarter

Nigerian economy grew by 6.28 per cent in
the second quarter
The Nigerian economy recorded a GDP
growth of 6.28 per cent in the second
quarter of this year, driven by non-oil
sector growth, while inflation fell for the
second straight month in August as a
result of tight monetary policy.
This
was
revealed by a report released by the National
Bureau of Statistics (NBS) over the weekend.
According to the report, the growth was lower
than 7.61 per cent recorded in the same period
of 2011.
The oil sector contributed 13.86 per cent to real
GDP, while the non-oil sector added 7.50 per
cent in real terms.
“The non-oil sector was driven by growth in
activities recorded in the building and
construction sector, while oil sector output
decreased (compared with Q2 2011),” the NBS
said in a report on Sunday.
The nation’s economy is expected to expand at
a slower rate this year, after rising 7.4 percent in
2011, due to disruptions to oil production and
economic weakness in developed countries that
buy its gasoline-rich crude.
Consumer inflation eased to 11.7 percent year-
on-year in August, down from 12.8 percent in
July, largely due to a fall in food inflation which
dropped to 9.9 percent in August from 12.1
percent the previous month, NBS said.
Average crude oil output rose marginally to 2.38
million barrels per day (bpd) in the second
quarter, from 2.35 million bpd in the first
quarter. This was down from 2.45 million bpd in
the second quarter last year.
Oil accounts for more than 80 percent of
Nigerian government revenue and around 95
percent of its foreign exchange earnings.
Taming inflation
According to the NBS, high interest rates and
lower food prices had helped temper inflation.
“The relative moderation in the index is
attributable to the relative slower rises in both
the Food and ‘core’ indices partly as a result of
aggressive monetary policy initiatives by the
Central Bank of Nigeria (CBN) base effects and a
much lower rise in several food prices,” the
bureau said.
As the CBN monetary policy committee meets
today, the inflation numbers will feed some
private sector demand for a loosening of
monetary policy, and most analysts are
expecting rates to remain at 12 percent, as they
have been since November last year.
The rate decision will be announced on Tuesday.