Investor Presentaiton
The Country and its
institutions
Business Organisation Labour and Social
and Regulation
Security Regulations
The Nigerian Financial Tax System
Services Industry
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Auditing Requirements
Importation of Goods Exportation of Goods
COVID-19 - Economic
and Fiscal Measures
1.6
Economic Overview
Contribution of oil and non-oil sectors
5.87%
Oil
Nigeria is a mono-cultural economy to the extent of its dependence largely on crude
oil export for over 90% of its foreign exchange earnings, though oil contributes
less than 10% to its Gross Domestic Product (GDP). According to the National
Bureau of Statistics (NBS), Nigeria's GDP in real terms grew by 0.11% (year-on-year)
in Q4 2020. This was an improvement of 3.73% points over the -3.62% growth
rate recorded in the preceding quarter (Q3 2020) and -2.44% points lower than
that of Q4 2019. 14 Overall, the country ended 2020 with a negative annual GDP
growth rate of -1.92%, a decline of -4.19% points when compared to the 2.27%
recorded in 2019. Nonetheless, the improved performance of the economy in Q4
2020, following the easing of the lockdown, return to regular trading activities and
international travels imply a return to positive growth from 2021.
Real GDP growth
6
4
2
0
-4
-6
94.13% Non - Oil
Non-oil GDP
Q1
2019
02
2019
Q3
2019
Q4
2019
Q1
Total
2020
90.78
91.02
90.23
92.68
91.22
90.50
Q2
2020
91.07
Q3
2020
91.27
Q4
2020
Total
94.13
91.84
Oil GDP
Q1
02
Q3
Q4
Q1
Q2
Q3
Total
-8
2019
2019
2019
2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
9.22
8.98
9.77
7.32
8.78
2020
9.50
2020
8.93
2020
8.73
Q4
2020
5.87
Total
8.16
2015
2016
2017
2018
2019
2020
Source: NBS
Source: NBS
Contribution from the oil sector declined from 8.73% in Q3 to 5.87% in Q4 2020,
while non-oil contribution rose from 91.27% in Q3 to 94.13% in Q4, 2020. Overall
annual oil and non-oil sector contribution to GDP amounted to 8.16% and 91.84%,
respectively.
14 National Bureau of Statistics (Q4 2020 report)
21
Investment in Nigeria Guide - 8th Edition
Major contributors to the annual GDP growth rate in 2020 included quarrying and
other minerals (21.16%), information and communication sector (12.90%), finance
and insurance sector (9.37%), motor vehicles and assembly (4.03%), water supply,
sewage, waste management and remediation (3.81%) and agricultural sector
(2.17%).
Nigeria's headline inflation 15 increased from 12.13% in January 2020 to 15.75% 16
at year end, signifying a record high since November 2017. The rise in headline
inflation continued into 2021, with a 0.71% increase from 15.75% in December
2020 to 16.47% in January 2021. Meanwhile, core inflation 17 stood at 11.85% in
January 2021, representing a 2.5% increase from 9.35% in January 2020.
15 Headline inflation refers to the rate of change in the consumer price index (CPI)
16 http://www.cbn.gov.ng/rates/inflrates.asp
17 Core inflation is a measure of inflation which excludes certain items that face volatile price movements.
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