Non-Oil Sector Bolsters Nigeria’s Economic Growth Rate in Q2 2022

Nigeria’s non oil sector grew by 4.77% in real terms in the second quarter (Q2) of 2022 to bolster the country’s economic growth rate by 3.54% year-on-year in real terms in the quarter, the National Bureau of Statistics (NBS) reported on Friday.

This was 1.47% contraction when compared to 5.01% growth rate recorded in the second quarter of 2021 and an increase of 0.44% from 3.11% achieved in Q1 2022.

On a quarterly basis, real economy contracted by 0.37% in the quarter under review as drop in economic activity due to rising cost of goods and services impacted economic productivity.

Aggregate Gross Domestic Product (GDP) stood at N45,004,520.89 million in nominal terms, representing a growth rate of 15.03% when compared to aggregate GDP of N39,123,713.32 million posted in the second quarter of 2021.

Nigeria’s aggregate or nominal GDP grew faster than the 14.99% growth recorded in the second quarter of 2021 and higher than the 13.25% growth recorded in the preceding quarter.

The Oil Sector

Nigeria’s oil sector contracted by 11.77% year-on-year in the second quarter despite crude oil trading consistently high since Russia invaded Ukraine in February.

In the quarter, Africa’s largest crude oil producer pumped 1.43 million barrels per day (mbpd), lower than the 1.61 mbpd achieved in the same quarter of 2021 but lower than 1.49mbpd recorded in the first quarter of 2022.

Despite the contraction recorded in the oil sector, growth was 14.27% better than the 26.04% contraction filed in Q1 2022. On a quarterly basis, the sector declined by 4.97%.

The oil sector contributed 6.33% to the total real GDP in Q2 2022, down from 7.42% it contributed in the corresponding quarter of 2021 and 6.63% it contributed in Q1 2022.

The Non-Oil Sector

The non-oil sector remains the powerhouse of the Nigerian economy as it contributed 93.67% to the total GDP in the quarter under review. This is better than the 92.58% it contributed in Q2 2021 and 93.37% added in Q1 2022.

The sector grew by 4.77% in real terms in Q2 2022, a decrease of 1.97% points compared to the rate recorded same quarter of 2021 and 1.31% points lower than the first quarter of 2022.

In the second quarter, the non-oil sector was driven mainly by Information and Communication (Telecommunication); Trade; Financial and Insurance (Financial Institutions); Transportation (Road Transport); Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco), accounting for positive GDP growth.