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Thursday, May 19, 2022

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Nigeria economy grows 5% in second quarter, its third consecutive growth

By Oludare Mayowa

 

Nigeria’s economy grew 5.01 percent year-on-year in the second quarter of 2021, its third consecutive growth after receding into recession in the third quarter of last year and better than the 0.51 percent in the preceding quarter.

Latest report by the National Bureau of Statistics (NBS) on Thursday said the economy grew 2.70 percent year-to-date compared to -2.18 percent for the first half of 2020.

“Nigeria’s Gross Domestic Product (GDP) grew by 5.01 percent (year-on-year) in real terms in the second quarter of 2021, marking three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020,” the NBS report stated. 

“The Q2 2021 growth rate was higher than the -6.10 percent growth rate recorded in Q2 2020 and the 0.51 percent recorded in Q1 2021 year on year, indicating the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19 related restrictions.

“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 percent in 2021 compared to -2.18 percent for the first half of 2020.

“Nevertheless, quarter on quarter, 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,” the NBS stated in it report.

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In the quarter under review, aggregate GDP 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 percent.

The nominal GDP growth rate in Q2 2021 was higher than -2.80 percent growth recorded in the second quarter of 2020 when economic activities slowed sharply at the outset of the pandemic.

The Q2 2021 nominal growth rate was also higher than 12.25 percent growth recorded in Q1 2021.

For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors, NBS said.

“The Oil sector contributed 7.42 percent 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 percent and 9.25 percent respectively.

“The non-oil sector grew by 6.74 percent in real terms during the reference quarter (Q2 2021). The Q2 2021 growth rate 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 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 easing of movement, business and economic activity across the country relative to the same period a year earlier,” NBS stated.

 

 

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