Nigeria Economy Records 3.11% GDP Growth- Says NBS
The national economy has sustained positive trend for the sixth consecutive quarter, recording an output growth of 3.11% in the first quarter of 2022 on a year-on-year basis.
In the period under review, aggregate Gross Domestic Product (GDP) stood at N45.32 trillion, latest statistical information released by the National Bureau of Statistics (NBS) has indicated.
The Statistician General of the Federation Mr. Semiu Adeyemi Adeniran, broke the news in a statement on Monday.
According to him, the economy has been on the path of growth for five quarters, signifying an exit from the recession after the recession experienced by the country in 2020 occasioned by the COVID-19 pandemic.
He highlighted the recent performance of the economy over the last five quarters to include growth recorded: 0.11% (Q4 2020), 0.51% (Q1 2021), 5.01% (Q2 2021), 4.03% (Q3 2021), and 3.98% (Q4 2021).
“I am pleased to announce to you that the economy maintained this positive trend for the sixth consecutive quarter, recording an output growth of 3.11% in the first quarter of 2022 on a year-on-year basis.
“It is important to state that the improvement seen in the output growth over time depicts steady progress made by the nation in restoring economic stability disrupted by the Covid-19 pandemic. Thus, we are gradually tending towards economic stability,” he said.
Giving summary of first quarter 2022 Gross Domestic Product estimates, the NBS boss stated in nominal terms, aggregate GDP stood at N45.32 trillion in the first quarter of 2022.
He noted the performance is higher when compared to the first quarter of 2021 which recorded N40.01 trillion, indicating a year-on-year nominal growth rate of 13.25%, adding that Nominal Gross Domestic Product in the preceding quarter of Q4 2021 stood at N49.28 trillion.
“In terms of real GDP, the first quarter of 2022 was recorded at N17.35 trillion, higher by N522.49 billion than the N16.83 trillion recorded in the first quarter of 2021. This shows output growth of 3.11% in the first quarter of 2022.
“Output in the first quarter of 2022 was, however, lower by N2.98 trillion when compared to the fourth quarter of 2021 when the aggregate real GDP was N20.33 trillion.
“The Crude oil production in the first quarter of 2022 recorded an average daily oil production of 1.49 million barrels per day (mbpd), lower than the daily average production of 1.72mbpd recorded in the same quarter of 2021 by 0.23mbpd, and lower than the fourth quarter of 2021 production volume of 1.50mbpd by 0.01mbpd. Resultantly, the Oil GDP grew by -26.04% in Q1 2022 and accounted for 6.63% of total output during the reference quarter.
“The non-oil sector grew by 6.08% in real terms during the reference quarter (Q1 2022). This rate was higher by 5.28% points compared to the rate recorded same quarter of 2021 and 1.34% points higher than the fourth quarter of 2021.
“This sector in the first quarter of 2022 was mainly driven by activities in the Information and Communication (Telecommunication); Trade; Financial and Insurance (Financial Institutions); Agriculture (Crop Production); and Manufacturing (Food, Beverage & Tobacco), all accounting for positive GDP growth. In real terms, the non-Oil sector contributed 93.37% to the nation’s GDP in the first quarter of 2022, higher than the share recorded in the first quarter of 2021 which was 90.75%, and lower than the fourth quarter of 2021 record at 94.81%.
“Fastest growing activities in the first quarter of 2022. Financial and Insurance sector, Water Supply, Sewerage, Waste Management & Remediation sector, Information and Communication sector, Trade sector, and Human Health & Social Services sector showed strong growth figures during the first quarter of 2022.
“Thus, the fastest-growing activities in real terms during the first quarter of 2022 were Rail Transport & Pipelines (124.54%); Air Transport (50.68%); Metal Ores (30.76%); Financial Institutions (25.43%); “Telecommunications & Information Services (14.50%); Chemical and Pharmaceutical Products (10.33%); Food, Beverages, and Tobacco (9.81%); and Cement (9.57%).
“However, some of the slowest growing activities include Oil Refining (-44.26%); Crude Petroleum and Natural Gas (-26.04%); Road Transport (-24.63%); Quarrying and Other Minerals (-13.72%); Coal Mining (-12.97%); Electrical and Electronics (-4.87%), etc.
“Rail and Air transport activities witnessed high demand in the first quarter of 2022 compared to the corresponding quarter of 2021, as they are known to provide alternative modes of transportation considered to be safer, in addition to the easing travel restrictions.”
Raed Also
“The growth recorded in Metal Ores was driven principally by the increase in the volume of production during the quarter. Again, there was an improvement in the performance of Water Supply, Sewerage, Waste Management, and Remediation activities during the quarter as a result of an increased volume of water processing and waste collection. On the other hand, the poor performance of oil was occasioned by operational challenges such as vandalism of pipelines and oil theft.”