The National Bureau of Statistics (NBS) on Thursday said Nigeria’s Gross Domestic Product (GDP) grew by 3.98per cent (year-on-year) in real terms in the fourth quarter (Q4) of 2021.
This showed a sustained positive growth for the fifth quarter since the recession witnessed in 2020 when output contracted by -6.10 per cent and -3.62 per cent in Q2 and Q3 of 2020 under the Covid-19pandemic.
According to NBS report, the fourth-quarter growth indicates a steady economic recovery accounting for an annual growth of 3.40 per cent in 2021.
The report explained further that the Q4 2021 growth rate was higher than the 0.11 per cent growth rate recorded in Q4 2020 by 3.87 per cent points and lower than 4.03 per cent recorded in Q3 2021 by 0.05 per cent points.
“Nevertheless, quarter on quarter, real GDP grew at 9.63 per cent in Q4 2021 compared to Q3 2021, reflecting a higher economic activity than the preceding quarter.
“In the quarter under review, aggregate GDP stood at N49,276,018.23 million in nominal terms. This performance is higher when compared to the fourth quarter of 2020 which recorded aggregate GDP of N43,564,006.29 million, indicating a year-on-year nominal growth rate of 13.11 per cent.
“The nominal GDP growth rate in Q4 2021 was higher relative to 10.07 per cent growth recorded in the fourth quarter of 2020 but lower compared to 15.41 per cent growth recorded in the preceding quarter. 2021 annual nominal growth stood at 13.92 per cent.
“For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors,” the report added.
The Oil Sector
The nation in the fourth quarter of 2021 recorded an average daily oil production of 1.50 million barrels per day (mbpd), lower than the daily average production of 1.56mbpd recorded in the same quarter of 2020 by 0.06mbpd and lower than the third quarter 2021 production volume of 1.57mbpd by 0.07mbpd.
Real growth of the oil sector was -8.06 per cent (year-on-year) in Q4 2021 indicating an increase by 11.71 per cent points relative to rate recorded in the corresponding quarter of 2020. Growth increased by 2.68% points when compared to Q3 2021 which was -10.73 per cent.
Quarter-on-Quarter, the oil sector recorded a growth rate of -24.06 per cent in Q4 2021. Annual growth stood at -8.30 per cent, a rate better than the -8.89 per cent recorded in 2020.
The Oil sector contributed 5.19 per cent to total real GDP in Q4 2021, down from figures recorded in the corresponding period of 2020 and down compared to the preceding quarter, where it contributed 5.87 per cent and 7.49 per cent respectively. Nevertheless, the sector contributed 7.24 per cent to real GDP in 2021.
The non-oil sector grew by 4.73 per cent in real terms during the reference quarter (Q4 2021). This rate was higher by 3.05 per cent point compared to the rate recorded same quarter of 2020 and 0.71 per cent point lower than the third quarter of 2021.
This sector was driven in fourth quarter 2021 mainly by Agriculture (crop production); trade; Information and Communication (Telecommunication); and Financial and Insurance (Financial Institutions), accounting for positive GDP growth.
In real terms, the Non-Oil sector contributed 94.81 per cent to the nation’s GDP in fourth quarter 2021, higher from share recorded in the fourth quarter of 2020 which was 94.13 per cent and higher than the third quarter of 2021 recorded as 92.51 per cent. The annual contribution in 2021 was 92.76 per cent.