Nigeria, Africa’s largest economy, grew by 0.11 percent year-on-year in the final quarter of 2020, according to the latest report from the National Bureau of Statistics (NBS).
This represents the first positive growth since Nigeria’s economy contracted by 6.10 percent in the second quarter of 2020 and 3.2 percent in the third quarter of 2020.
According to NBS, “while the Q4 2020 growth rate was lower than growth rate recorded the previous year by –2.44 percent points, it was higher by 3.74 percent points compared to Q3 2020.”
On a quarterly basis, the economy grew by 9.68 percent, making it the second consecutive quarter-on-quarter real growth in 2020 after two negative quarters.
In 2020, the economy contracted by 1.92 percent, representing a decline of 4.20 percent when compared to 2.27 percent recorded in 2019.
Nigeria’s Oil Sector
During the final quarter of 2020, Nigeria produced 1.56 million barrels per day of crude oil. This was 0.44 million barrels per day lower than the 2.00 million barrels per day recorded in the same quarter of 2019 and 0.11 million barrels per day lower than the third quarter of 2019.
The sector contracted by 19.76 percent year on year in the third quarter of 2020. This constitutes a 26.12 percent decline when compared to the corresponding quarter of 2019 and a 5.87 percent decline when compared to the third quarter of 2020.
In 2020, the oil sector contracted by 8.89 percent, down from 4.59 percent growth recorded in 2019. The sector contributed 5.87 percent to the total economy in the fourth quarter of 2020, again down from the 7.32 percent and 8.73 percent posted in the corresponding period of 2019 and the preceding quarter of 2020, respectively.
Nigeria’s Non-Oil Sector
The non-oil sector expanded by 1.69 percent in the fourth quarter of 2020, at a slower pace than the 2.26 percent posted in the same period of 2019 but better than the 2.51 percent decline recorded in the preceding quarter.
On a yearly basis, the non-oil sector declined by 1.25 percent in 2020 when compared to 2.06 percent posted in 2019.
In real terms, the non-oil sector contributed 94.13 percent to the nation’s GDP in the fourth quarter of 2020, higher than the 92.68 percent the sector contributed to the economy in the fourth quarter of 2019 and 91.27 percent it contributed in the third quarter.
The non-oil sector was largely driven by growth from Information and Communication (Telecommunications & Broadcasting). Other key drivers were Agriculture (Crop Production), Real Estate, Manufacturing (Food, Beverage & Tobacco), Mining and Quarrying (Quarrying and other Minerals), and Construction, which posted positive growth.
