According to NBS in the data released on Wednesday, titled, “Nigerian Gross Domestic Product Report (Expenditure and Income Approach)”, which covered expenditure and income approach estimates for the third and four quarters of 2018, and the first quarter of 2019, however, household consumption contributed the largest share to real GDP, accounting for 60.53 per cent in Q3 2018, from 57.09 per cent in Q3 of 2017, and 62.17 per cent in Q4 2018 compared to 58.29 per cent in the corresponding quarter of 2017.
The report shows that, Nigeria’s real GDP at basic prices in the Q3 and Q4 quarters of 2018, grew by 1.81 per cent and 2.38 per cent year-on-year respectively.
While the annual real GDP in 2018 grew by 1.91 per cent, to more than double the growth rate recorded in 2017 which stood at 0.82 per cent, in the first quarter of 2019, it grew by 2.10 per cent to indicate a faster pace of expansion on a quarterly basis.
“It is worth noting that this period also coincided with the campaign and general elections season which may have supported the observed developments,” NBS stated in the report.
When compared with the corresponding quarters of 2017, real GDP rose by 0.64 per cent points and 0.27 per cent points respectively in Q3 and Q4 2018, and by 0.21 per cent in Q1 2019.
Meanwhile, in real terms, household consumption grew by 7.90 per cent and 9.26 per cent in Q3 and Q4 2018, much faster than the corresponding quarters of 2017 which recorded growth rates of –10.04 per cent and 3.54 per cent respectively over the preceding year.
The Q3 and Q4 2018 growth rates were 17.93 per cent points and 5.72 per cent points higher than in 2017 respectively.
Similarly, in Q1 2019, household consumption grew in real terms by 1.41 per cent, or 1.66 per cent points higher compared to –0.25 per cent in Q1 2018.
On quarter-on-quarter basis, Q3 and Q4 2018 recorded growth rates of 10.16 per cent and 8.16 per cent respectively.
However, household consumption in Q1 2019 was –17.14 per cent lower than in Q4 2018.
In nominal terms, household final consumption grew by 8.38 per cent and 9.32 per cent in Q3 and Q4 2018 respectively.
The recorded growth rate in Q1 2019, at 7.50 per cent, was slower than recorded in Q1 2018 by –0.93 per cent points.
On quarter-on-quarter basis, growth was high at 19.68 per cent in third quarter of 2018, from 1.80 per cent in the previous quarter.
The nominal consumption growth rate however trended downwards in the last quarter of 2018 and the first quarter of 2019, growing 3.85 per cent and –15.03 per cent respectively.
The nominal growth, which reflects the movements in prices over the period, accounted for 61.28 per cent, 62.94 per cent and 60.43 per cent of real GDP at basic prices in Q3, Q4 2018 and Q1 2019 respectively.
Meanwhile, in the last two quarters of 2018, real general government expenditure grew by 34.78 per cent and 68.48 per cent, showing a stronger growth compared to the corresponding quarters in 2017 where growth rates were –8.82 per cent and –24.16 per cent respectively.
Consequently, on quarter on quarter basis, general government expenditure rose by 0.07 per cent in Q3 2018 and 10.75 per cent in Q4 2018.
The positive growth in expenditure in the third and fourth quarters of 2018 indicated strong public spending, the NBS report stated.
However, the sector slowed by -9.48 per cent by the first quarter of 2019.
General government expenditure accounted for 5.66 per cent of gross domestic product (expenditure) in real terms in the first quarter of 2019.