LCCI Reacts To 2018 GDP Report, Decries ‘Jobless Growth’

The Lagos Chamber of Commerce and Industry (LCCI), on Friday noted the 2.4% growth in the economy in the final quarter of 2018, as well as the 1.9% notch recorded in the Gross Domestic Products (GDP) as released by the National Bureau of Statistics (NBS), compared to the 2.4% increase reported in 2018Q3 and 1.8% for the year.

This performance, the chamber said in a review of the NBS report, is still fragile, weak, vulnerable and remains a cause for concerning, coming far below the 3% annual population growth, “with wider implications for poverty, inclusive and sustainable growth.”
Worse still, the chamber continued, “the growth in the economy is also tagged a “jobless growth” as unemployment keep on rising. The latest report by poverty world clock also suggests that the number of extremely poor Nigerians has risen to 91.6m.”

The 2018 GDP growth is the highest in three years, but is overwhelmed by the more significant levels of 8.35% and 9.54% attained in 2009 and 2010 respectively; before falling to 5.31% in 2011; 4.21% in 2012; after which it improved to 5.49% and 6.22% in the two succeeding years.
Sectors like trade, manufacturing and agriculture performed low for the period, suggesting the need for implementation of policies and reforms that will attract investment into the key employment elastic sectors.

The top five fastest sectors in 2018, LCCI said, were: metal ores, which grew at 26.34%; followed by air transport, 20.7%; while road transport followed with 14.47%; telecommunications and informational services, 11.33%; while quarrying and other mining sector recorded 10.33% growth. Meanwhile, the five biggest decline for the period came from coal mining, 5.81%; real estate, 4.74%; motor vehicles and assembly, 2.54%; and public administration, 2.05%.
On the performance of key sector, the chamber regretted that at 2.1% in 2018, the agricultural sector, which accounted for 25% of real output for the period, recorded its lowest growth rate since 1993 and the worst since 2010.

The oil sector, including crude, petroleum and natural gas could only grow at 1.1%, significantly slower than the 4.69% in 2017; just as manufacturing with an annual growth of 2.09% in 2018, representing a huge improvement over the -0.21% growth in 2017, even as it contributes 9.2% to over GDP. The 2018 growth was however a far cry from 17.82% in 2011, 13.46% the following year, or 21.8% peak since 201, reported in 2013; or the 14.72% of 2014, after which it turned negative for the next three years.

The trade sector, which contributed 17.16%, contracted by 0.63% in 2018, better than the prior year’s -1.05%, a situation it said, “signifies that Nigerian consumers are still under severe pressure in terms of weak purchasing power, as trade is major consumer facing sector.”

Telecommunication and information services sector, which contributed 10% to overall GDP, jumped by 11.33% in 2018, from a 2.04% contraction in 2017, after growing 2.03% a year earlier. The sector growth in 2018 was the most significant since 2010, when it recorded 34.83% rise.

https://investdata.com.ng/2019/02/lcci-reacts-to-2018-gdp-report-decries-jobless-growth/