By Samuel Oyejola, Abuja
Economic policies implemented by the Buhari-led Federal Government in 2017 failed to impact as real Gross Domestic Product (GDP) of first quarter 2018 dropped compared to last quarter in 2017 and same quarter in 2017.
Nigerian Gross Domestic Report Q1 2018, the latest report released by the Nigeria Bureau of Statistics on Monday, indicated that the Non oil sector recorded a significant drop in first quarter of 2018(Q1) with 90.39% contribution to GDP compared to 91.47% recorded in same quarter 2017 and 92.65 in the last quarter of 2017.
Recalled that last year, the Federal Government issued executive orders on ease of doing business directly aimed at stimulating investment and generally boost the economy.
In spite the drop in real GDP Q1 2018 the executive order impacted activities in the Manufacturing sector.
The real GDP growth in the Manufacturing sector in Q1 indicated a 3.39% increase compared to Q1 2017. The sector contributed 9.91% to real GDP in Q1 2018.
According to the NBS report, the growth rate of the sector on a quarter-on-quarter basis was 3.16.
However, Trade, a critical sector expected to benefit from the executive order dropped year on year by 0.79%, although there was slight improvement on the preceding quarter with 0.34% in Q1 2018.
The Finance and Insurance sector also performed actively in contribution to real GDP with on 3.55% an improvement compared to 3.19% recorded in the first quarter of 2017 and 2.83% recorded in the preceding quarter.
Keeping to the Buhari led government’s promise to diversify the economy through agriculture, the Minister for Agriculture and Rural Development, Chief Audu Ogbeh had since inception promised to ensure that the sector contributes actively to the GDP, make the sector a major economic driver of the country.
With initiatives like the Anchor Borrowers scheme of the Central Bank of Nigeria to boost rice farming, and various initiatives of the federal government not forgetting yam exportation, Audu Ogbeh’s target may not be as far as the horizon if policy implementation and programmes of the ministry are sustained.
The sector contributed less than a quarter to real GDP far behind Services’ 54.3% and a little above Industries’21.65% in the first quarter of 2018.
Compare to the last quarter of 2017 the contribution in Q1 2018 was a 4.48% drop while Services gained 1%. Year on year indicator showed that the sector gained 0.22%.
Sectors like the education sector, fell from 2.26% in Q1 2017 to 2.10% in Q12018, professional scientific and technical services dropped by 0.15% in Q1 2018 compared to Q1 2017 and Construction sector contracted by -1.54% from 0.15% in Q1 2017.