Nigeria’s Gross Domestic Product (GDP) has recorded the strongest performance in over six years (since 2014), mustering third consecutive quarterly growth as the nation’s economy grows by 5.01% (year-on-year) in real terms, latest report released on Thursday by the National Bureau of Statistics (NBS) has shown.
In the latest growth, the non-oil sector contributed 92.58% to the nation’s GDP in the second quarter of 2021.
The NBS explained that during the quarter, 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), reflecting the ease of movement after the COVID-19 lockdown experienced in 2020.
“In real terms, the non-oil sector contributed 92.58% 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% and the first quarter of 2021 recorded as 90.75%,” the report said.
It explained that three consecutive quarters of growth led to the increase in the GDP index following the negative growth rates recorded in the second and third quarters of 2020.
“The Q2 2021 growth rate was higher than the -6.10% growth rate recorded in Q2 2020 and the 0.51% recorded in Q1 2021 year-on-year, indicating the return of business and economic activity near levels seen before the nationwide implementation of COVID-19 related restrictions,” the report read.
“The steady recovery observed since the end of 2020, with the gradual return of commercial activity, as well as local and international travel, accounted for the significant increase in growth performance relative to the second quarter of 2020 when nationwide restrictions took effect.
“Year to date, real GDP grew 2.70% in 2021 compared to -2.18% for the first half of 2020.”
According to NBS, the aggregate GDP in the quarter under review stood at N39,123,713.32 million in nominal terms – higher than the second quarter of 2020 with aggregate GDP of N34,023,197.60 million, indicating a year-on-year nominal growth rate of 14.99%.
For the oil sector, the report showed that the average daily oil production stood at 1.61 million barrels per day (mbpd) in the second quarter of 2021.
The report said that the value was -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 recorded in the first quarter of 2021.
“Quarter-on-quarter, the oil sector recorded a growth rate of -20.35% in Q2 2021. The Oil sector contributed 7.42% to total real GDP in Q2 2021, down from figures recorded in the corresponding period of 2020, and down compared to the preceding quarter, where it contributed 8.93% and 9.25% respectively,” the report said.
It added, “The non-oil sector grew by 6.74% in real terms during the reference quarter (Q2 2021). The Q2 2021 growth rate was higher by 12.80% points compared to the rate recorded in the same quarter of 2020 and 5.95% points higher than the first quarter of 2021.”
