Nigeria’s economy slows to 2.01 percent growth in Q1

A general view shows the central business district in Nigeria's commercial capital of Lagos, Nigeria February 10, 2019. REUTERS/Nyancho NwaNri

Growth in Nigeria’s fragile economy slowed to 2.01% in the first quarter thanks to a poor showing from the country’s oil industry.

Lagos CBD
Courtesy: Pinterest

The annual pace dropped from the previous quarter’s 2.38%, when activity was likely to have been boosted by state spending in the run-up to February and March elections in which President Muhammadu Buhari won a second term.

The largely crude-dependent economy emerged from recession in 2017 and has been recovering in great part due to higher oil prices.

In the first quarter, the non-oil sector grew 2.47% while the oil sector shrank 2.40%, according to the statistics office. Crude production rose slightly to 1.96 million barrels per day from 1.91 million in the previous quarter.

Nigeria’s central bank has forecast growth of 3% for 2019.

Growth in the first quarter of 2018 was 1.89%.

The slowdown in growth could increase pressure on the Nigerian Central Bank to cut interest rates further when its announces its policy decision on Tuesday.

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