GDP contribution decline to N8.33tn

A breakdown analysis showed that the real growth rate of the construction sector reduced by 1.56 per cent points from the rate recorded in the previous year.

The NBS, however, noted the sector contributed 11.79 per cent to nominal GDP in the first quarter of 2023, higher than the 9.68 per cent it contributed a year earlier and higher than the 10.16 per cent contributed to the fourth quarter of 2022.

It read, “Construction contributed 11.79 per cent to nominal GDP in the first quarter of 2023, higher than the 9.68 per cent it contributed a year earlier and higher than the 10.16 per cent contributed to the fourth quarter of 2022.

“The real growth rate of the construction sector in the first quarter of 2023 was recorded at 3.27 per cent (year-on-year), lower by 1.56 per cent points from the rate recorded in the previous year.

“Relative to the preceding quarter, there was a decrease of 0.53 per cent points. Quarter-on-quarter, the sector grew by 2.78 per cent in real terms. Its contribution to total real GDP was 4.22 per cent in the first quarter of 2023.”

For the real estate sector, the statistics agency recorded a relative decline of 4.46 per cent compared to 5.62 per cent contributed in the fourth quarter of 2022.

The report stated, “In nominal terms, Real Estate Services in the first quarter of 2023 grew by 2.36 per cent, lower by 8.47 per cent points than the growth rate reported for the same period in 2022 and lower by 8.25 per cent points compared to the preceding Quarter.

“On a quarter-on-quarter, the sector growth rate was -28.39 per cent. The contribution to nominal GDP in Q1 2023 stood at 4.46 per cent, relative to 4.92 per cent recorded in the first quarter of 2022 and 5.62 per cent in the fourth quarter of 2022.

“Real GDP growth recorded in the sector for the first quarter of 2023 stood at 1.70 per cent, lower than the growth recorded in the first quarter of 2022 by 2.74 per cent points, and lower by 1.08 per cent points relative to Q4 2022.” informed of Tinubu’s speech on petrol subsidy removal.

They insisted that the inability to pay artisans, provide building materials for construction and increased the cost of production had halted any form of revenue contribution to the GDP, leading to an increase in housing deficits.

At a residential development visited during the period in Jabi, the site engineer, who spoke on the condition of anonymity, told our correspondent that labourers were now jobless, adding that the level of production had reduced drastically.

“For instance, the labourers who were supposed to work onsite today left because they wanted cash payment and they don’t have a bank account. We had to increase the workload on those who have an account so we can achieve something today.

“Currently, the naira scarcity has affected our productivity; work onsite now is not full scale.

“Some of them even think we are wicked because they don’t believe that we don’t have the cash to pay them,” he said.

“Some of the fuel stations only heard about the subsidy removal and just stopped selling,” the resident had said.

“They could have at least waited for the new president to fully resume work before acting.”

In response to the situation, Mike Osatuyi, national operations controller of IPMAN, told TheCable that the reflexive action of customers who wanted to stock up on cheap petrol before the price of the product increased was to blame for the unprecedented level of queues.

“The queue has to do with the announcement made by the president. People want to refill their tanks so that they can buy it at a good price before the price increases,” he said.

“Now that subsidy has gone, it has gone for life. And now, there is fairness for Nigeria as a country. Some marketers are the beneficiaries of the subsidy, including smugglers.

“But as the president has said, whatever the gain on the subsidy is, it will be used for infrastructure. Now that they (the new administration) want to have a unified foreign exchange, everyone can buy and import on the same platform.

“Nobody will buy yam and give me small for just one percent and take 90 percent and say he is doing business. That is where we are.”

When asked about the product’s availability, Osatuyi said there is currently enough stock to supply the nation, but that there would be a price increase.

“No, there would not be scarcity, but the problem is that there is going to be an increase in price,” he said.

However, he said the removal of the subsidy will benefit the general public and result in the improvement of infrastructure and the building of good roads.

When asked what price the product is likely to rise to, he said: “It is going to be determined by market forces, and then it has to do with the exchange rate and the crude price. That is going to be the determinant of the price.”