Nigeria’s agric contribution to GDP falls despite economic rise

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The sector contributed 22.35 per cent to the nation’s economy, better than the same quarter in 2021 but lower than the preceding fourth quarter.

Nigeria’s agricultural sector contributed less to the Gross Domestic Product in the first quarter of 2021 than it did a quarter earlier, a stark demonstration of declining farming activities amid insecurity.

The sector contributed 22.35 per cent to the nation’s economy, better than the same quarter in 2021 but lower than the preceding fourth quarter, a report by the National Bureau of Statistics showed Sunday.

That represents a decline of 28.61 per cent. The report said the decline was a result of shrinking economic activities.

“In terms of contribution, the sector accounted for 22.35 percent of overall GDP in real terms in Q1 2021, higher than the contribution in the first quarter of 2020 but lower than the fourth quarter of 2020 which stood at 21.96% and 26.95% respectively,” the NBS said.

In real terms, the agricultural sector in the first quarter of 2021 grew by 2.28 per cent (year-on-year), an increase of 0.07 per cent points from the corresponding period of 2020, but a decrease of -1.14 per cent points from the preceding quarter. Quarter-on-quarter, the agriculture sector grew at –28.61 per cent.

The overall economy grew 0.51 per cent in the first three months from a year earlier, an improvement on the previous quarter as oil prices and industrial activities rose.

Nigeria exited its second recession since 2016 in the fourth quarter of 2020, and growth has been slow since then. The country faces its highest inflation four years.

In April, food inflation fell to 22.72 per cent from 22.95 per cent recorded in March.



Source: Premium Times

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