National Bureau of Statistics (NBS) has revealed that Nigeria’s economy grew significantly in the fourth quarter (Q4) of 2022, as its gross domestic product increased by 3.52%.
The figure represents a growth of 1.27 percentage point compared to the third quarter (Q3) of 2022 which stood at 2.25%.
NBS released the GDP report on Wednesday, where the 2022 growth is attributed mainly to the service sector.
According to report the service sector improved by 5.69% and contributed 56.27% to the country’s GDP, while the agriculture sector underperformed, due to the flooding that rocked the nation last year.
However, NBS said the annual GDP growth rate in 2022 fell to “3.10% from the 3.40% reported in 2021”.
“Although the agriculture sector grew by 2.05% in the reference period, its performance was significantly hampered by severe incidences of flood experienced across Nigeria, accounting for lesser growth relative to the fourth quarter of 2021 which was 3.58%,” the bureau said.
“Moreover, the industry sector was yet challenged, recording -0.94% growth and contributing less to the aggregate GDP, relative to the third quarter of 2022 and the fourth quarter of 2021.
“Thus, the performance of agriculture and industry reduced in 2022 relative to 2021, while the performance of the services sector improved in 2022.”
Oil Vs Non-oil Sector Performance
In the report, NBS said the oil sector contributed about 4.34% to the Q4 GDP growth, and 5.67% in the total annual GDP for 2022.
It linked the oil sector’s poor performance to the Nigeria’s dwindling oil production.
“The nation in the fourth quarter of 2022 recorded an average daily oil production of 1.34 million barrels per day (mbpd), lower than the daily average production of 1.50mbpds recorded in the same quarter of 2021 by 0.16mbpd and higher than the third quarter of 2022 production volume of 1.20mbpd by 0.14mbpd,” the report added.
“The real growth of the oil sector was -13.38% (year-on-year) in Q4 2022 indicating a decrease of 5.33% points relative to the rate recorded in the corresponding quarter of 2021.
“Growth increased by 9.29% points when compared to Q3 2022 which was -22.47%.
“On a quarter-on-quarter [basis], the oil sector recorded a growth rate of -14.93% in Q4 2022.
“The oil sector contributed 4.34 percent to the total real GDP in Q4 2022, down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 5.19 percent and 5.66 percent respectively.
“The total annual contribution of oil to aggregate GDP in 2022 was 5.67 percent”
On the other hand, the non-oil sector grew by 4.4% in 2022 and contributed 95.66% to the Q4 growth rate.
The non-oil sector, which includes information and communication (telecommunication) sector topped the contribution, trade and agriculture (crop production).
Other Institutions
Others are financial and insurance (financial institutions), manufacturing (food, beverage and tobacco), real estate and construction, and accounting, contributed positively to the GDP growth.
The sector’s contribution to the nation’s 2022 Q4 GDP figure is higher than the share recorded in the corresponding quarter of 2021 which was 94.81% and higher than Q3 2022 at 94.34%.
Meanwhile, on aggregate, 94.33% was contributed in 2022, higher than the 92.76% reported in 2021.
