•Oil sector contribution worsens
By Babajide Komolafe
THE National Bureau of Statistics, NBS, has said that the nation’s economy as measured by the Gross Domestic Product, GDP, grew by 3.11%, year on year, YoY, in the first quarter of the year (Q1’22), from 0.51% recorded in the corresponding period in 2021 (Q1’21).
The Q1’22 growth rate was, however, 0.87 percentage points lower than the 3.98 per cent recorded in the previous Q4’21.
The growth in Q1’22 was driven by the Non Oil sector which expanded by 6.08 per cent YoY in Q1’22, as against the 26.04 per cent YoY contraction recorded by the Oil Sector in the same quarter.
In its Nigerian Gross Domestic Product Report (Q1 2022) report released yesterday, NBS stated: “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.
“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%”.
Oil sector contraction persists
NBS further stated: “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.”
Non-Oil strengthens further
On non-oil sector, NBS said, “The non-oil sector grew by 6.08% in real terms during the reference quarter (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. “This sector was driven in the first quarter 2022 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.”