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Oil sector growth slows by 1.89% in Q1 of 2016 – Report

Nigerian Bureau of Statistics, NBS’s first quarter report has shown that real growth in the oil sector slowed by 1.89% (year-on- year) in Q1 of 2016.

The report published on Wednesday, said in the first quarter of 2016, oil production stood at 2.11million barrels per day (mbpd), 0.05mbpd lower from production in Q4 of 2015. Oil production was also lower relative to the corresponding quarter in 2015 by 0.07mbpd when output was recorded at 2.18mbpd.

This, the report said represents an improvement relative to growth recorded in Q1 2015 when growth slowed by 8.15%.

Growth also increased by 6.39% points relative to growth in Q4 of 2015. Quarter-on Quarter, growth also improved by 10.27%.

As a share of the economy, the Oil sector was calculated to have contributed 10.29% of total real GDP, marginally lower from the share recorded in the corresponding period of 2015, yet higher from the share in Q4 of 2015 by 2.24% points.

On the Mining & Quarrying sector consisting of Crude Petroleum and Natural Gas, Coal Mining, Metal ore and Quarrying and other Minerals, NBS said the sector slowed by 34.98% (year on year) during Q1 2016.

This it said, was 11.22% points higher from growth recorded in Q1 2015, and marginally higher from growth recorded in the previous quarter.

The decline in year-on- year growth is attributable to the falling oil prices. The sector contributed 4.14 % to overall GDP in Q1 2016, lower than the contribution recorded in same quarter of 2015 and the preceding quarter by 2.60% points and 1.04% points respectively.

In real terms NBS said, Mining and Quarrying sector slowed at 2.96% (year-on- year) in Q1 2016, a relative improvement from Q1 2015 by 4.94% points and Q4 2015 by 5.08% points.

While Crude Oil output weighted on growth, the sector was supported by a substantial improvement in output in Metal Ores. The contribution of Mining and Quarrying to Real GDP in Q1 2016 was 10.34%, marginally lower relative to the corresponding quarter of 2015 yet higher from the previous quarter by 2.13% points.

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