By Bassey Udo
Nigeria’s economy grew in the second quarter of the year, with the country’s gross domestic product (GDP), which cover the aggregate value of goods and services between April and June rose by 3.54 percent, the National Bureau of Statistics (NBS) said.
The Statistics agency said in its latest Nigerian GDP Q2 2022 Report said the Q2 2022 growth rate decreased by 1.47 percent points from 5.01 percent growth rate in the corresponding period in 2021.
However, the latest growth rate was higher by 0.44 percent points relative to 3.11 percent in Q1 2022, while real GDP growth rate on quarter-on-quarter stood at -0.37 percent, reflecting lower economic activity than in the preceding quarter.
Aggregate GDP for the period stood at N45trillion, in nominal terms, the NBS said the performance was higher by 14.99 percent when compared to N39 trillion recorded in the corresponding period last year, which translated to a year-on-year nominal growth rate of 15.03 percent. Real GDP stood at N17.29 trillion.
In terms of sectoral performance, the NBS said t the oil sector recorded a marginal decline, with oil production maintaining a sustained drop from 1.5 million barrels per day in the last quarter of 2021 to 1.49million barrels per day in the first quarter of 2022 and 1.43 million barrels per day in the second quarter.
Real growth of the oil sector was –11.77 percent (year-on-year) in the second quarter, showing an increase of 0.89 percent points relative to the rate recorded in the corresponding quarter of 2021.
The Oil sector contributed 6.33 percent to the total real GDP in the second quarter, down from the 7.42 percent contribution in the corresponding period of 2021 and 6.63 percent in the first quarter 2022.
The non-oil sector, which grew by 4.77 percent in real terms during the second quarter, was lower by 1.97 percent points compared to the rate recorded same quarter of 2021 and 1.31 percent points lower than the first quarter of 2022.
The growth in the non-oil sector in the second quarter of 2022 was driven mainly by the performance in the Information and Communication (Telecommunication); Trade; Financial and Insurance (Financial Institutions); Transportation (Road Transport); Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco).
In real terms, the non-oil sector accounted for 93.67 percent to the nation’s GDP in the second quarter of 2022, higher than the share recorded in the second quarter of 2021, which was 92.58 percent and higher than the first quarter of 2022 recorded as 93.37%.
A review of the major economic Sectors of the economy showed that Mining & Quarrying, consisting of Crude Petroleum and Natural Gas, Coal Mining, Metal ore and Quarrying and other Minerals sub-activities grew nominally by 49.75 percent (year on year) in the second quarter.
Coal Mining recorded the highest growth rate of all the sub-activities at 71.03 percent, followed by Quarrying and Other Minerals activity at 52.96 percent, with Crude Petroleum and Natural gas the main contributor to the sector, with a weight of 91.74 percent.
The Mining & Quarrying sector contributed 8.20% to the overall GDP in the second quarter of 2022, higher than the contributions recorded in 2021 second quarter at 6.30 percent and higher than the previous quarter recorded at 7.89 percent.
The four sub-activities in the Agricultural sector, namely Crop Production, Livestock, Forestry and Fishing grew by 13.83 percent (year-on-year) in nominal terms in Q2 2022, an increase of 7.47 percent points from the same quarter of 2021.
Crop Production remained the major driver of the sector, accounting for about 91.99 percent of the overall nominal growth of the sector in the second quarter of 2022.
The Manufacturing sector, comprising thirteen activities, Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic; Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing. recorded a 5.21 percent (year-on-year) performance.
This is about 33.12 percent points lower than the performance in the corresponding period of 2021 (38.33 percent) and 6.51 percent points lower than the preceding quarter figure of 11.72 percent.
In terms of Electricity, Gas, Steam and Air conditioning Supply sector, the sector recorded a negative year-on-year growth of -6.97 percent in the second quarter of 2022, about 121.27 percent points lower than the 114.30 percent growth rate in the corresponding quarter of 2021, and 4.56 percent points lower than the growth rate of -2.41% percent recorded in the quarter before. Quarter–on-Quarter, the sector recorded a growth rate of 263.62% in Q2 2022.
Trade in the second quarter of 2022, recorded a nominal year-on-year growth rate which stood at 14.59 percent, a decrease of 8.68 percent points when compared to the second quarter of 2021 growth rate of 23.27 percent and 0.22 percent points higher than the previous quarter’s growth rate of 14.37 percent.
The Information and Communication sector, composed of Telecommunications and Information Services; Publishing; Motion Picture, Sound Recording and Music Production; and Broadcasting continued record growth at 14.11 percent (year on-year), 14.18 percent points increase from the rate of -0.07 percent decline recorded in the same quarter of 2021, and 6.43% points lower than the rate recorded in the preceding quarter.
The Finance and Insurance Sector, which consists of Financial Institutions and Insurance, accounted for 89.10 percent and 10.90 percent of the sector respectively in real terms in Q2 2022.
As a whole, the sector grew at 29.90 percent in nominal terms (year-on-year), with the growth rate of Financial Institutions at 31.63% and 17.28 percent growth rate recorded for Insurance. The overall rate was higher than that of Q2 2021 by 31.76 percent points and lower by 2.39 percent points than the preceding quarter.