UPDATE 2-Nigeria's economy grew in Q3 after oil output rose to three year high

(Adds analyst comments, background)
By Chijioke Ohuocha
ABUJA, Nov 22 (Reuters) - Nigeria's economic growth rose to
an annual rate of 2.28% in the three months to the end of
September after the production of its main export commodity,
crude oil, rose to a more than three year high, the statistics
office said on Friday.
The economy, Africa's largest, expanded by 0.17% in the
previous quarter and 0.47% in the same period a year earlier.
The country has struggled to shake off the effects of a 2016
recession that ended the following year.
Growth rates in Nigeria have been bouncing back this year,
though from a low base, after the oil sector, which accounts for
around two-thirds of government revenue and 90% of foreign
exchange, shrugged off its negative performance in the first
quarter.
Crude production in the third quarter stood at 2.04 million
barrels per day, its highest since the first quarter of 2016,
the statistics office said.
Friday's data release comes ahead of the central bank's
announcement of its main interest rate on Tuesday and days after
the statistics office said annual inflation was at a 17-month
high in October. Nigeria recorded the highest quarterly growth in September
since the last quarter of 2018 as the oil sector rose 6.49%. The
non-oil sector rose 1.85% during the period.
Razia Khan, chief economist for Africa and the Middle East
at Standard Chartered, welcomed the oil sector performance but
added that it raises concerns that Nigeria could come under more
pressure to adhere to its OPEC quota.
The non-oil sector is showing signs of recovery but is
inadequate for Nigeria's potential, Khan said.
"Given the hoped-for faster passage of the 2020 budget, and
efforts to boost private sector credit, we expect more of a
recovery to emerge all-round in 2020," Khan said.
The central bank has been trying to boost growth by forcing
commercial banks to lend to stimulate the economy but it has
also kept benchmark interest rates high and liquidity tight in a
bid to support the currency and wade off inflation.
The central bank has forecast growth of 3% for 2019 while
the IMF expects the year to finish off at 2.3%.