Nigeria’s real aggregate value of goods and services in the economy, which constitutes the country’s Gross Domestic Product (GDP) in the second quarter of 2021 recorded -7.13 percent growth, the National Bureau of Statistics (NBS) said on Thursday.
In its latest Nigerian Gross Domestic Product (GDP) report, the NBS said the decline in real GDP was amid 5.01 percent growth (year-on-year) terms.
The growth, from 0.51 percent recorded in the first quarter of 2021 (year on year), the statistics agency said, marks three consecutive quarters of growth following the negative growth rates recorded in
the second and third quarters of 2020.
The Q2 2021 growth rate was higher than the previous -6.10 percent negative growth rate recorded in the corresponding quarter in 2020 and the 0.51 percent in the first quarter of 2021 (year on year).
The NBS said the gradual consistent growth of the economy from the negative to the positive territory was indicative of the return of business
and economic activity close to levels attained prior to the commencement of the nationwide implementation of COVID-19 lockdown restrictions.
During the period, the economy virtually ground to a halt, as movement were restricted to all persons, except those on essential services pertaining to the COVID-19 protocols.
The NBS attributed the steady recovery of the economy observed since the end of 2020, with the gradual return of commercial
activity as well as local and international travels, to the significant increase in growth
performance relative to the second quarter of 2020 when nationwide restrictions took effect.
A review of the Year to date data showed that real GDP grew by 2.70 percent in 2021, compared to -2.18 percent for the first half of 2020. However, on quarter on
quarter basis, the review showed that real GDP grew at -0.79 percent in Q2 2021, compared to Q1 2021, reflecting slightly slower economic
activity than the preceding quarter due largely to seasonality.
In the quarter under review, the NBS said aggregate GDP stood at about N39.12.trillion, in nominal terms, higher than the second quarter of 2020 with aggregate GDP of N34.023 trillion, indicating a year-on-year
nominal growth rate of 14.99 percent.
The nominal GDP growth rate in the second quarter of 2021, the NBS report said, was higher than -2.80 percent growth in the second quarter of 2020 when economic activities slowed sharply at the outset of the
Also, the second quarter 2021 nominal growth rate, the NBS said, was higher than 12.25 percent growth recorded in the previous quarter.
With the continued negative impact of the pandemic on the economy, the NBS said the oil sector growth declined marginally, with average daily oil production capacity put at 1.61 million barrels per day (mbpd),
about -0.19mbpd lower than the average daily production of 1.81mbpd recorded in the same quarter of 2020 and -0.10mbpd lower than the 1.72mbpd in the first quarter of 2021).
Real growth of the oil sector, the NBS said, was –12.65 percent (year-on-year) in Q2 2021, indicating a decline of –6.02 percent.
For the first half of 2021, the NBS said real GDP slipped further away in the negative territory to about -7.13 percent, compared to -0.80 percent for the first half of 2020.
The performance reflected a lower oil
output, with quarter-on-quarter report showing, the oil sector output declined to -20.35 percent in the second quarter of 2021.
The contribution of the oil sector, the NBS said, accounted for about 7.42 percent to the total real GDP in the second quarter 2021, down from figures in the corresponding period, compared to the preceding quarter, where it contributed 8.93 percent and 9.25 percent respectively.
In the non-oil sector, the NBS said
the sector grew by 6.74 percent in real terms in the second quarter.
The growth rate of the sector in the second quarter was higher by 12.80 percent points, compared to the rate recorded in the same quarter of 2020 and 5.95 percent points higher than the first quarter of 2021.
During the quarter, the NBS said the sector was driven mainly by growth in Trade, Information and Communication (Telecommunication), Transportation (Road Transport), Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco).
The growth in the sector, the NBS said, reflected the easing of the movement, business and economic activity across the country relative to the same period a year earlier.
In real terms, the non-oil sector contributed 92.58 percent to the nation’s GDP in the second quarter of
2021, higher from shares recorded in the second quarter of 2020, which was 91.07 percent and the first quarter of 2021 recorded as 90.75 percent.