Nigeria fast economic growth, especially in oil
Tag: Nigeria economic, Nigeria economic growth
Summary: Africa's largest oil exporter pumped an average of 2.4 million barrels per day in the last three months of the year, down from 2.6 million barrels per day a year earlier due to production outages.
Africa's largest oil exporter pumped an average of 2.4 million barrels per day in the last three months of the year, down from 2.6 million barrels per day a year earlier due to production outages.
But the non-oil sector grew 9.07 percent in the fourth quarter, higher than the 8.93 percent recorded in the same period in 2010.
"This growth was largely driven by improved activities in the telecommunications, building and construction, hotel and restaurant and business services," the NBS said.
Nigeria's economy grew 7.36 pct in the full year 2011, down from 7.98 pct in 2010, largely in line with expectations. The decline in growth reflects global economic sluggishness. Growth in Nigeria outperformed most developing economies.
Nigeria is reliant on oil exports for more than 95 percent of its foreign exchange revenues but only 15 percent of GDP. Agriculture is the largest contribution to GDP, making up about 40 percent of it.
Telecoms surged in Nigeria in the past decade after private companies were allowed to take advantage of the huge mobile phone market potential in the continent's most populous country.
"This sector continued to perform impressively and has remained one of the major drivers of growth in the Nigerian economy, with its contribution to total GDP increasing continuously," the NBS report said.
The government was expecting to receive more funds after removing fuel subsidies on January 1, but it was forced to reinstate them partially after tens of thousands took to the streets in more than a week of protests.
Despite record high oil prices last year, Nigeria's foreign exchange reserves remained flat and oil savings fell. Nigeria is vulnerable to an oil price dip, but with prices at over $125 a barrel , revenues remain strong.
Despite rocketing growth, poverty is increasing in Nigeria owing largely to bad governance.
An NBS report a month ago showed poverty rose to 60.9 percent in 2010, compared with 54.7 percent in 2004, with almost 100 million people living on less than $1 a day.
"Growth without tangible development is a major risk to Nigeria's outlook," Gadio said.