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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. KPMG
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