Service, Agric Sectors Propel Nigeria’s 3.1% YoY GDP Growth In 2022
Latest data from the Nigeria’s National Bureau of Statistics (NBS), on Wednesday showed that Gross Domestic Product (GDP) maintained a northward movement in 2022, recording an overall growth rate at 3.10%, even if slower than the 3.40% reported in 2021. The 2022 growth is still a far cry from the 6.22% reported at the end 2014.
Overall, growth was yet propelled by the performance of agriculture and industry. But while the contribution of the agric sector it reduced relative to 2021, that of Services sector improved in 2022.
The GDP grew by 3.52% (year-on-year) in real terms in the fourth quarter to N56.76tr,\
In nominal GDP, as real GDP stood at N21.04tr driven mainly by the Services sector, which recorded a growth of 5.69%, as against 7.01% y/y in the previous quarter, contributing 56.27% to the aggregate GDP; while the agriculture sector rose by 2.05% within the period.
The 2022Q4 growth rate was faster than the 2.25% recorded in the previous quarter, but slightly slower when compared to the 3.98% reported in the corresponding period of 2021.
The biggest contribution to real GDP in Q4 included: crop production, 24.1%; trade, 15.82%; telecommunications and information, 13.55%; real estate, 6.18; crude petroleum and natural gas, 4.34; food, beverages and tobacco, 4.14%; financial institutions, 3.67%; and construction, 3.47%; among others.
Performance of the agric sector GDP which grew faster at 2.05% in Q4 than the 1.43% of the preceding quarter, would have been more robust but for the “severe incidences of flood experienced across the country, accounting for lesser growth relative to the fourth quarter of 2021 which was 3.58%.”
Also, the Industry sector within the period was yet challenged, as it recorded -0.94% growth, though better than the -8.00% y/y recorded in 2022Q3, contributing less to the aggregate GDP relative to the third quarter of 2022 and the fourth quarter of 2021.
A further breakdown of GDP figures showed that the oil sector contracted by 13.38% y/y, as crude oil production averaged 1.34 million barrels per day between October and December last year, 11.67% better than the Q3-22 level of 1.20mb/d. Consequently, the oil sector contributed 4.34% to the total GDP, down from the 5.66% of the previous quarter.
On its part, the non-oil sector grew by 4.44% y/y in Q4-22, slightly better than the preceding quarter’s 4.27%, accounting for 95.66% of total GDP, up from 94.81% and 94.34% in Q4-21 and Q3-22, respectively.
In terms of contribution, Services, Agriculture, and Industries, respectively, accounted for 55.40%, 25.58%, and 19.02% of overall output.