Nigeria’s economy grew significantly in the fourth quarter (Q4) of 2022 as its gross domestic product increased by 3.52 percent, according to the National Bureau of Statistics (NBS).
The figure represents a growth of 1.27 percentage point compared to the third quarter (Q3) of 2022 which stood at 2.25 percent.
According to the NBS GDP report released on Wednesday, the 2022 growth is attributed mainly to the service sector.
The bureau said the service sector improved by 5.69 percent and contributed 56.27 percent to the country’s GDP, while the agriculture sector underperformed, due to the flooding that rocked the nation last year.
However, NBS said the annual GDP growth rate in 2022 fell to “3.10 percent from the 3.40 percent reported in 2021”.
“Although the agriculture sector grew by 2.05 percent in the reference period, its performance was significantly hampered by severe incidences of flood experienced across the country, accounting for lesser growth relative to the fourth quarter of 2021 which was 3.58 percent,” the bureau said.
“Moreover, the industry sector was yet challenged, recording -0.94 percent growth and contributing less to the aggregate GDP relative to the third quarter of 2022 and the fourth quarter of 2021.
“Thus, the performance of agriculture and industry reduced in 2022 relative to 2021, while the performance of the services sector improved in 2022.”
OIL VS NON-OIL SECTOR PERFORMANCE
In the report, NBS said the oil sector contributed about 4.34 percent to the Q4 GDP growth, and 5.67 percent in the total annual GDP for 2022.
It linked the oil sector’s poor performance to the Nigeria’s dwindling oil production.
“The nation in the fourth quarter of 2022 recorded an average daily oil production of 1.34 million barrels per day (mbpd), lower than the daily average production of 1.50mbpds recorded in the same quarter of 2021 by 0.16mbpd and higher than the third quarter of 2022 production volume of 1.20mbpd by 0.14mbpd,” the report added.
“The real growth of the oil sector was -13.38 percent (year-on-year) in Q4 2022 indicating a decrease of 5.33 percent points relative to the rate recorded in the corresponding quarter of 2021.
“Growth increased by 9.29 percent points when compared to Q3 2022 which was -22.47 percent. On a quarter-on-quarter [basis], the oil sector recorded a growth rate of -14.93 percent in Q4 2022.
“The oil sector contributed 4.34 percent to the total real GDP in Q4 2022, down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 5.19 percent and 5.66 percent respectively.
“The total annual contribution of oil to aggregate GDP in 2022 was 5.67 percent”
On the other hand, the non-oil sector grew by 4.4 percent in 2022 and contributed 95.66 percent to the Q4 growth rate.
The non-oil sector, which includes information and communication (telecommunication) sector topped the contribution, trade, agriculture (crop production), financial and insurance (financial institutions), manufacturing (food, beverage and tobacco), real estate and construction, and accounting, contributed positively to the GDP growth.
The sector’s contribution to the nation’s 2022 Q4 GDP figure is higher than the share recorded in the corresponding quarter of 2021 which was 94.81 percent and higher than Q3 2022 at 94.34 percent.
Meanwhile, on aggregate, 94.33 percent was contributed in 2022, higher than the 92.76 percent reported in 2021.
Source: Top Stories
