Nigeria's trade sector fall into double dip recession

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Chief Executive Officer Of Cowry Asset Management, Mr Johnson Chukwu, told Channels Television's on Channels Television programme, Business Morning said although the GDP Q2 report shows positive growth, the key sectors, however, did not perform positively.

Oil production dipped to 1.84 million barrels per day (mpbd) from 2 mpbd in the first quarter.

NBS said that it reported in the second quarter of 2017 that the country was out of recession as the country recorded the first positive growth in Gross Domestic Product (GDP) following five quarters of contradiction.

This was the second consecutive quarter of negative GDP growth rate after it fell -2.57% in the first quarter of 2018.

The Nigerian Bureau of Statistics in its new report published on Monday notes that the 1.50% rise is -0.45% points slower than 1.95% recorded in the first quarter of 2018.

The report further stated: "Non-oil growth was driven by transportation which grew by 21.76 per cent supported by growth in construction which grew by 7.66 per cent and electricity which grew by 7.59 per cent".

"The non oil sector performance was however constrained by agriculture that grew by 1.3 per cent compared to three per cent in Q1 2018 and 3.01 per cent in Q2 2017".

According to the Bureau, the Nigerian economy can be classified broadly into the oil and non-oil sectors. He is optimistic that once these issues are addressed we should be able to, once more, achieve positive growth in the oil and gas sector.

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Nigeria's trade sector which makes up about 16.45% of Nigeria's Gross Domestic Product composition fell to -2.14% in the second quarter of 2018.

An interesting analysis from the Q2, 2018 GDP report is that the Information and Communication Technology alongside the Construction sectors, emerged the key performers for the quarter in review.

Speaking on Tuesday at the 58th annual general meeting of the Nigeria Bar Association (NBA) in Abuja, the minister said this would help the country fully achieve the aim of the Economic Recovery and Growth Plan (ERGP).

He said he expects to see a rebound in growth in the agriculture sector in subsequent quarters.

The other sector that maintained a continued positive growth rate, the minister noted, was industry as a result of the performance of manufacturing and solid minerals, which grew by 0.68 per cent and 5.24 per cent respectively in the second quarter.

Apart from the slow growth, Nigeria still experiences the challenge of a nation with a population (2%) growing faster than its economy.

"This represents a 7.85% increase in nominal GDP when compared to the preceding quarter (N28.46 trillion) and 13.57% increase when compared to the corresponding quarter of 2017 (N27.03 trillion)", according to the report.