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Economic growth fell by 0.8% in 2012 – CBN

By on November 5, 2013

The growth  of the nation’s economy dropped by 0.8 per cent from 7.4 per cent in 2011 to 6.6 per cent in 2012, according to the Central Bank of Nigeria’s 2012 yearly report.

The report, released on Friday, linked the development to the contraction in the growth of the oil sector occasioned by leakages in the form of oil theft and production disruptions during the year.

The report reads, “The domestic economy remained resilient with a robust growth of 6.6 per cent, compared with the 7.4 per cent recorded in 2011.

“The development was largely attributed to the contraction in the growth of the oil sector occasioned by leakages in form of oil theft and production disruptions.

“The non-oil sector, however, continued its strong performance underpinned by sustained investment in power and other infrastructure, as well as supportive fiscal incentives and a modest increase in credit.

“The bank is optimistic that with sustained economic reforms, particularly the focus on infrastructure, the diversification of the economy away from oil, in line with the government’s transformation agenda, as well as the consolidation of the gains of the financial sector reforms, the continued growth in the economy will be assured.”

According to the CBN, the estimated real GDP, measured in 1990 basic prices, grew by 6.6 per cent in 2012, compared with 7.4 per cent in 2011. The growth was accounted for by the services, wholesale/retail, agriculture, building/construction and industry sub-sectors, contributing 2.6, 1.9, 1.6, 0.3 and 0.2 percentage points, respectively.

The development was attributed to the salutary effects of the various programmes and initiatives put in place by the government and the CBN to boost real sector output.

These, it said, included sustained investment in power and other infrastructure, enabling fiscal incentives, as well as a modest increase in credit to the economy.

“Non-oil GDP grew at 7.9 per cent, compared with 8.8 per cent in 2011. The growth was driven mainly by agriculture, building and construction, wholesale and retail trade, as well as communications,” the report added.

 

 

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