Nigeria’s GDP surges by 5%, as oil sector contribution dip

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There seems to be some signs of positivity in Nigeria’s economy, as its Gross Domestic Products (GDP) grew year-on-year (YoY) by 5.0 percent in the second quarter of 2021 (Q2’21).

This is an increase of 0.51 percent when compared to Q1’21 growth rate.

The National Bureau of Statistics (NBS) disclosed this today in its GDP report for Q2’21 noting that the Oil Sector’s contribution to GDP fell by 1.83 percent points to 7.42 per cent in Q2’21 from 9.25 per cent in Q1’21.
However, non-oil sector contribution to GDP rose by 1.93 per cent points to 92.58 per cent from 90.75 per cent.
The bureau cited the steady recovery observed since the end of 2020, with the gradual return of commercial
activity as well as local and international travel, as cause of increase in growth performance relative to Q2’20 when nationwide restrictions took effect.

NBS stated:”GDP grew by 5.01 per cent(year-on-year, YoY) in real terms in Q2’21, marking three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020.
“The Q2’21 growth rate was higher than the -6.10 per cent growth rate
recorded in Q2’20 and the 0.51 per cent recorded in Q1’21 YoY, indicating the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19 related
restrictions.
“The steady recovery observed since the end of 2020, with the gradual return of commercial activity as well as local and international travel, accounted for the significant increase in growth
performance relative to the second quarter of 2020 when nationwide restrictions took effect.
Year to date, real GDP grew 2.70 per cent in 2021 compared to -2.18 per cent for the first half of 2020.
“Nevertheless, QoQ, real GDP grew at -0.79 per cent in Q2’21 compared to Q1’21, reflecting slightly slower economic
activity than the preceding quarter due largely to seasonality.
On oil sector, “Real growth of the oil sector was –12.65 per cent (YoY) in Q2’21 indicating a decrease of –6.02 per cent
points relative to the growth rate recorded in the corresponding quarter of 2020. “Growth decreased by –
10.44 per cent points when compared to Q1 2021 which was –2.21 per cent.
” For the first half of 2021, real GDP was
recorded at -7.13 per cent, compared to -0.80 per cent for the first half of 2020 (H1’20), the performance reflecting lower oil
output.
“QoQ, the oil sector recorded a growth rate of -20.35 per cent in Q2’21.
“The Oil sector
contributed 7.42 per cent to total real GDP in Q2’21, down from figures recorded in the corresponding period
of 2020 and down compared to the preceding quarter, where it contributed 8.93 per cent and 9.25 per cent respectively.”

On non-oil sector, the bureau said:”The non-oil sector grew by 6.74 per cent in real terms during the reference quarter (Q2’21). The Q2’21 growth rate was higher by 12.8 per cent points compared to the rate recorded in the same quarter of 2020 and
5.95 per cent points higher than Q1’21.
“During the quarter, the sector was driven mainly by growth in Trade, Information and Communication (Telecommunication), Transportation (Road Transport),
Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco), reflecting the
easing of movement, business and economic activity across the country relative to the same period a year
earlier.
“In real terms, the Non-Oil sector contributed 92.6 per cent to the nation’s GDP in Q2’21, higher from shares recorded in Q’20 which was 91 per cent and Q1’21 recorded as 90.8 per cent.”

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