Nigeria’s Gross Domestic Product (GDP) grew by 3.11% (year-on-year) in real terms in the first quarter (Q1) of 2022, the latest report from the National Bureau of Statistics (NBS) has shown.
NBS said the growth showed “a sustained positive growth for the sixth consecutive quarter since the recession witnessed in 2020 when negative growth rates were recorded in quarter two and three of 2020.”
In its overview of the GDP report, the NBS said: “The first quarter 2022 growth rate further represents an improvement in economic performance. The observed trend since Q4 2020 is an indication of a gradual economic stability.
“The Q1 2022 growth rate was higher than the 0.51% growth rate recorded in Q1 2021 by 2.60% points and lower than 3.98% recorded in Q4 2021 by 0.88% points.
“Nevertheless, quarter-on-quarter, real GDP grew at -14.66% in Q1 2022 compared to Q4 2021, reflecting a lower economic activity than the preceding quarter.
“In the quarter under review, aggregate GDP stood at N45,317,823.33 million in nominal terms. This performance is higher when compared to the first quarter of 2021 which recorded aggregate GDP of N40,014,482.74 million, indicating a year-on-year nominal growth rate of 13.25%.
“The nominal GDP growth rate in Q1 2022 was higher relative to the 12.25% growth recorded in the first quarter of 2021 and higher compared to the 13.11% growth recorded in the preceding quarter.”
The first quarter 2022 growth rate further represents an improvement in economic performance. The observed trend since Q4 2020 is an indication of a gradual economic stability.
Sectoral contributions
Broken down further, the GDP report showed that real growth of the oil sector was –26.04% (year-on-year) in Q1 2022 indicating a decrease of 23.83% points relative to the rate recorded in the corresponding quarter of 2021. Growth decreased by 17.99% points when compared to Q4 2021 which was –8.06%.
Quarter-on-Quarter, the oil sector recorded a growth rate of 9.11% in Q1 2022. The Oil sector contributed 6.63% to the total real GDP in Q1 2022, down from the figures recorded in the corresponding period of 2021 and up compared to the preceding quarter, where it contributed 9.25% and 5.19% respectively.
The lower rate of growth in the oil sector was attributed to lower production volume in Q1, with “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 2021 production volume of 1.50mbpd by 0.01mbpd.”
On the other hand, the non-oil sector grew by 6.08% in real terms in Q1 2022. This rate was higher by 5.28% points compared to the rate recorded in the same quarter of 2021, and 1.34% points higher than the fourth quarter of 2021.
Growth was driven “mainly by Information and Communication (Telecommunication); Trade; Financial and Insurance (Financial Institutions); Agriculture (Crop Production); and Manufacturing (Food, Beverage & Tobacco), accounting for positive GDP growth,” the report said.
In real terms, the non-Oil sector contributed 93.37% to Nigeria’s GDP year-on-year, higher than the 90.75% recorded in Q1 2021, but lower than the Q4 2021 rate of 94.81%.
